✨ Financial Statements Notes
Natural Gas Corporation – Gas Wholesaling 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 Wholesaling Activities (NGC). Gas Wholesaling comprise those activities relating to the sale of gas to persons for the purpose of resupply by the other person (other than those wholesaling activities involving the supply of gas to refuellers).
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 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) Revenue and Expenses
Revenue and expenses are stated exclusive of Goods and Services Tax (GST).
ii) 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 first in first out basis. All other current assets are valued at their estimated realisable value.
iii) Gas Entitlements
Under the terms of the gas supply contracts, NGC is required to pay for a minimum quantity of gas in each contract year whether or not delivery has been made. Prepayments for undelivered gas entitle NGC to delivery of gas in subsequent years without further payment. The prepayments are capitalised as a long-term asset and will be amortised to earnings as the prepaid gas is utilised.
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.
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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
✨ LLM interpretation of page content
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Natural Gas Corporation - Gas Wholesaling Activities Notes to the Financial Statements
(continued from previous page)
🏭 Trade, Customs & Industry30 June 2001
Accounting Policies, Financial Statements, Gas Wholesaling, Revenue, Expenses, Assets, Gas Entitlements, Taxation, Deferred Tax, Financial Disclosure