✨ Financial Statements Notes
4036
NEW ZEALAND GAZETTE
No. 165
Natural Gas Corporation – Gas Retailing Activities
Notes to the Financial Statements
For the year ended 30 June 2001
- Statement of Accounting Policies
a) Accounting Entity
The financial statements are those of Natural Gas Corporation – Gas Retailing Activities (NGC). Gas Retailing Activities involves the supply of gas to a consumer.
b) Special Purpose Financial Statements
The financial statements have been prepared in accordance with the Gas (Information Disclosure) Regulations 1997 and generally accepted accounting principles.
c) General Accounting Policies
The general accounting policies recognised as appropriate for the measurement and reporting of earnings and the financial position under the historical cost method, as modified by the revaluation of certain assets, have been followed in the preparation of these financial statements. This includes the going concern concept and the matching of revenue and expenses under the accrual concept.
d) Particular Accounting Policies
The following particular accounting policies which materially affect the measurement of financial performance and financial position have been adopted:
i) Revenues and Expenses
Revenues and expenses are stated exclusive of Goods and Services Tax (GST).
ii) Valuation of Fixed Assets
All fixed assets are included at cost less accumulated depreciation.
iii) Current Assets
Accounts receivables are valued at their estimated realisable value. Inventories are valued at the lower of cost and net realisable value. Cost is determined on a weighted average basis. All other current assets are valued at their estimated realisable value.
iv) Depreciation
The rates of depreciation vary according to the nature and economic lives of the assets and fall within the following ranges (on a straight line basis):
Plant and Equipment 5-15 years
Motor Vehicles 5 years
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 and deferred tax is offset unless realisation of the asset is virtually certain. Future tax benefits and deferred tax is offset.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 165
Gazette.govt.nz —
NZ Gazette 2001, No 165
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Natural Gas Corporation Financial Statements Notes
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🏭 Trade, Customs & Industry23 November 2001
Financial Statements, Accounting Policies, Gas Retailing, Natural Gas Corporation