✨ Gas Financial Performance Statement
4402 NEW ZEALAND GAZETTE No. 160
iii) 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 weighted average basis. All other current assets are valued at their estimated realisable value.
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):
| Low Pressure Pipelines | 25 to 50 years |
| Meters and Stations | 15 to 45 years |
| Buildings | 40-100 years |
| Plant, Equipment & Motor Vehicles | 5-20 years |
| Capital Spares | 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
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.
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
The revenues, expenses and fixed assets relating to the Gas meters have been excluded from the 2003 results, as they are not required to be disclosed under the Gas Information Disclosure Regulations 1997. Otherwise, there have been no changes in accounting policies. These policies have been applied on a consistent basis during the year.
2. Surplus before Taxation
| $ Thousands | |
|---|---|
| 2003 | |
| Surplus before Taxation is stated after charging/(crediting): | |
| Audit fees and expenses | 31 |
| Depreciation | 4,319 |
| Amortisation | 767 |
| Leasing Costs | 197 |
| Profit on Sale of Pipeline Assets | - |
| Asset Acquisition Feasibility Cost | 993 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 160
Gazette.govt.nz —
NZ Gazette 2003, No 160
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Gas Distribution Financial Performance Statement
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