✨ Financial Statements
VECTOR Limited
Electricity Lines Business
Statement Of Accounting Policies - continued
For the year ended 31 March 2002
l) Statement of cash flows
The following are the definitions of the terms used in the Statement of Cash Flows.
Operating activities include all transactions and other events that are not investing or financing activities.
Investing activities are those activities relating to the acquisition, holding and disposal of property, plant and equipment and investments that can include securities not falling within the definition of cash.
Financing activities are those that result in changes in the size and composition of the capital structure. This includes both equity and debt not falling within the definition of cash. Dividends paid in relation to the capital structure are included in financing activities.
Cash is considered to be cash on hand and current accounts in banks, net of bank overdrafts.
m) Dividends
Dividends are brought to account in the period in which they are declared. In previous years dividends have been recognised as liabilities in the period to which they were deemed to relate provided they were proposed or declared before the financial report was authorised for issue.
Changes in accounting policies
During the year the VECTOR group, of which the line business is the predominant activity, changed its accounting policy in respect of accounting for dividends. Under the new policy, dividends are only brought to account in the period in which they are declared. The Board of Directors has adopted this change in accounting policy to conform with the requirements of Financial Reporting Standard 5 Events Occurring After Balance Date.
In addition, the VECTOR group, of which the line business is the predominant activity, changed its accounting policy in respect of accounting for income tax. Under the new policy the VECTOR group, of which the line business is the predominant activity, recognises all timing differences in respect to property, plant and equipment, including those arising from revaluations. Previously timing differences in relation to revaluations of property, plant and equipment not expected to crystallise in the foreseeable future were not recognised. The change in policy has resulted in an increase of $65 million to the deferred tax liability and a decrease of the same amount to the asset revaluation reserve. Because the revaluation has previously been recognised directly in the revaluation reserve the tax effect has also followed this treatment and been taken directly to the revaluation reserve.
There have been no other changes in accounting policies.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 124
Gazette.govt.nz —
NZ Gazette 2002, No 124
✨ LLM interpretation of page content
🏭
Vector Limited Statement of Accounting Policies
(continued from previous page)
🏭 Trade, Customs & IndustryElectricity, Accounting Policies, Financial Statements, Vector Limited