New Zealand Gazette – 1999 – No. 186

Page 4431

✨ Financial Statements



3 DECEMBER NEW ZEALAND GAZETTE 4431

iv) 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.

v) Changes in Accounting Policy 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. Income Tax
$Thousands
1999 1998
---------------- ------------ ----------
The Income Tax Expense has been calculated as follows:
Surplus before Taxation 26,236 43,821
Income Tax at 33% 8,658 14,461
  1. Gas Entitlements
$Thousands
1999 1998
---------------- ------------ ----------
Advance Paid and Prepaid Gas Entitlements 194,174 182,833

NGC’s entitlements to gas are:

NGC has Take or Pay Gas Contracts with the Crown, whereby it has committed to purchase gas in annual contract quantities. The remaining commitments from 1 July 1999 to 30 September 2009 are 244 petajoules (1998, 272 petajoules).

NGC purchased, from the Crown, 262.5 petajoules of Maui gas to be delivered in annual scheduled entitlements up to 2009 for a single advance payment. This gas is referred to as Advance Paid Gas and requires no further payment to the Crown when delivery is taken except for payment of the energy resource levy. NGC takes approximately one unit of Advance Paid Gas for every two units purchased under its take or pay contract with the Crown. At the same time NGC obtained access to an additional 94.1 petajoules of gas paid for but not taken by the Crown under its contract with Maui Mining Companies.



Next Page →

PDF embedding disabled (Crown copyright)

View this page online at:


VUW Te Waharoa — PDF NZ Gazette 1999, No 186


NZLII — PDF NZ Gazette 1999, No 186




✨ LLM interpretation of page content

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

🏭 Trade, Customs & Industry
23 November 1999
Natural Gas, Financial Statements, Performance Measures, Gas (Information Disclosure) Regulations 1997, Audited Reports