New Zealand Gazette – 1999 – No. 121

Page 2878

✨ Financial Statements Notes



2878 NEW ZEALAND GAZETTE No. 121

(j) Income tax
The income tax expense charged against the surplus for the year is the estimated liability in respect of that surplus and is calculated after allowance for permanent differences and timing differences not expected to reverse in future periods. This is the partial basis for the calculation of deferred tax.

Tax effect accounting is applied on a partial basis using the liability method. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.

(k) Financial instruments
The Company has entered into swaps transactions for the primary purpose of reducing exposure to fluctuations in interest rates. While these financial instruments are subject to the risk that market rates may change subsequent to the acquisition of the financial instrument, such changes would generally be offset by opposite effects on the items being hedged. For the swap agreements, the differential to be paid or received is accrued as interest rates change and is recognised as a component of interest expense over the life of the agreement.

(l) Employee entitlements
Provision is made in respect of the company’s liability for annual and long service leave. The annual leave liability has been calculated on an actual entitlement basis at current rates of pay. The long service leave liability has been assessed on an actuarial basis.

Changes in Accounting Policies

There have been no changes in accounting policies. The policies have been applied on bases consistent with those used in previous years.

  1. OPERATING REVENUES
    Operating revenues include the following items:
1999 1998
$000’s $000’s
AC rental rebates 4,460 2,943
Bad debts recovered 18 95
Changes in bad debt provisions 66 -
Dividends - -
Interest 2,386 2,800
Line revenue invoiced by retailers 39,784 -
Line revenue invoiced to final consumers 93,425 129,855
Metering revenue reallocated (4,714) (6,734)
Other 1,798 7,626
Total 137,223 136,585


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✨ LLM interpretation of page content

🏭 Notes to the Financial Statements of Orion New Zealand Limited (continued from previous page)

🏭 Trade, Customs & Industry
Income Tax, Deferred Tax, Financial Instruments, Swaps, Employee Entitlements, Annual Leave, Long Service Leave, Accounting Policies

🏭 Operating Revenues of Orion New Zealand Limited

🏭 Trade, Customs & Industry
Revenue, AC Rental Rebates, Bad Debts, Interest, Line Revenue, Metering Revenue, Financial Performance