✨ Financial Statements
BULLER ELECTRICITY LIMITED – LINE BUSINESS
f) Employee Entitlements
Employee entitlements to salaries and wages, annual and long service leave and other benefits are recognised when they accrue to employees. Allowance is also made for the present value of future staff retirement and gratuity benefits.
g) Goods and Services Tax (GST)
The Statement of Financial Performance and Statement of Cash Flows have been prepared so that all components are stated exclusive of GST. All items in the Statement of Financial Position are stated net of GST with the exception of receivables and creditors which include GST.
h) Income Tax
Income tax expense is recognised on the surplus before taxation adjusted for permanent differences between taxable and accounting income. Deferred tax is calculated using the partial basis under the liability method. This basis is applied by considering the cumulative income tax effect of all timing differences, but recognising in the financial statements, as deferred tax, the income tax effect only to the extent that it can be foreseen to crystallise in the future. Deferred tax assets are only recognised to the extent that there is virtual certainty of realisation.
i) Financial Instruments
Financial instruments carried in the Statement of Financial Position include cash and bank balances, investments, receivables and trade creditors. These instruments are carried at their estimated fair value.
j) Statement of Cash Flows
The following are the definitions of the terms used in the Statements of Cash Flows.
(i) Cash means all cash balances, bank accounts and demand deposits which the company invests as part of its day to day cash management.
(ii) Operating activities include cash received from all revenue sources of the company and records all cash payments made by the company for the supply of goods and services.
(iii) Investing activities are those activities relating to the ownership of shares in investment companies and disposal/acquisition of fixed assets.
(iv) Financing activities are those activities which change the debt and equity structure of the company.
CHANGES IN ACCOUNTING POLICIES
There have been no changes in accounting policies and all policies have been applied on a basis consistent with those used in previous years.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 99
Gazette.govt.nz —
NZ Gazette 2001, No 99
✨ LLM interpretation of page content
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Buller Electricity Limited - Accounting Policies
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🏭 Trade, Customs & IndustryAccounting Policies, Employee Entitlements, GST, Income Tax, Financial Instruments, Statement of Cash Flows, Buller Electricity Limited