✨ Financial Statements Notes
NEW ZEALAND GAZETTE
27 NOVEMBER
4275
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 |
| Compressors and Gate Stations | 35-45 Years |
| Buildings | 40-100 years |
| Plant, Equipment and Capital Spares | 5-20 years |
| Motor Vehicles | 5-20 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. These expenditures include the connection of new customers to the gas system and the conversion of existing customers' appliances to the use of natural gas which are written off over periods up to ten years, and financing costs which are amortised to earnings over the remaining life of the relevant lending facility.
e) Changes in Accounting Policy and Comparatives
There have been no changes in accounting policies. These policies have been applied on a consistent basis during the year.
- Surplus before Taxation
| $Thousands | |
|---|---|
| 2002 |
Surplus before Taxation is stated after charging:
| Audit fees and expenses | 30 | 30 |
| Depreciation | 9,522 | 9,775 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 170
Gazette.govt.nz —
NZ Gazette 2002, No 170
✨ LLM interpretation of page content
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NGC – Gas Transmission Activities Notes to the Financial Statements
(continued from previous page)
🏭 Trade, Customs & Industry30 June 2002
Financial Statements, Accounting Policies, Depreciation, Deferred Income, Taxation, Deferred Expenditure, NGC, Gas Transmission