New Zealand Gazette – 1999 – No. 186

Page 4412

✨ Financial Statements



v) Taxation
NGC recognises deferred taxation using the liability method and on a comprehensive basis. Income tax expense is recognised on the surplus before taxation. It is then adjusted for permanent differences between taxable and accounting income. The tax effect of all timing differences, which arise from items being brought to account in different periods for income tax and accounting purposes, is recognised in the statement of financial position as a future tax benefit or as deferred tax. The future tax benefit or deferred tax is stated at the income tax rates prevailing at balance date. Future tax benefits are not recognised unless realisation of the asset is virtually certain. Future tax benefits and deferred tax is offset.

vi) Deferred Expenditure
Deferred expenditure is expenditure which provides benefits beyond the current accounting period and is written off over periods up to ten years. These expenditures relate to the connection of new customers to the gas system and the conversion of existing customers’ appliances to the use of natural gas.

vii) Goodwill
The excess of cost over the fair value of businesses acquired is recognised as goodwill and is amortised to the Statement of Financial Performance over periods of up to 20 years.

viii) Changes in Accounting Policies and Comparatives
There have been no changes in accounting policies. The presentation of certain comparatives has been restated to ensure consistency with current year disclosures.

  1. Surplus before Taxation
Surplus before Taxation is stated after charging: $ Thousands
1999 1998
Audit fees and expenses 28 18
Fees for other services paid to the Auditors 25 2
Depreciation 441 421
Leasing Costs 413 247
Goodwill Amortisation 104 -


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🏭 Natural Gas Corporation - Gas Retailing Activities Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
Natural Gas, Financial Performance, Efficiency Measures, Energy Delivery, Statistics, Reliability, Certification