✨ Financial Statements Accounting Policies
4044 NEW ZEALAND GAZETTE No. 165
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):
| High Pressure Pipelines | 65 years | Plant and Equipment | 5-15 years |
| Compressors and Gate Stations | 35-45 years | Capital Spares | 5-15 years |
| Buildings | 40-100 years | Motor Vehicles | 5 years |
Depreciation of pipelines commences when the pipeline is physically complete and flowing gas.
v) Deferred Income
Contributions received from gas utilities and other parties towards the capital expenditure on pipelines are accounted for initially in a deferred income account. Amortisation to income of the deferred income account takes place only after the obligations in connection with the contributions are performed. The deferred income account is amortised to the statement of financial performance over the life of the pipelines to which they relate or over the life of the gas supply contract whichever is the shorter.
vi) Taxation
Deferred taxation is recognised 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.
vii) 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 customers to the gas system and the conversion of existing customers' appliances to the use of natural gas.
viii) 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.
- Surplus before Taxation
| $Thousands | |
|---|---|
| 2001 | |
| Surplus before Taxation is stated after charging: | |
| Audit fees and expenses | 30 |
| Depreciation | 9,775 |
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 165
Gazette.govt.nz —
NZ Gazette 2001, No 165
✨ LLM interpretation of page content
🏭
Natural Gas Corporation Financial Statements
(continued from previous page)
🏭 Trade, Customs & Industry23 November 2001
Financial Statements, Accounting Policies, Depreciation, Deferred Income, Taxation, Deferred Expenditure, Gas Information Disclosure Regulations, Natural Gas Corporation