New Zealand Gazette – 2003 – No. 160

Page 4424

✨ Financial Statements



4424 NEW ZEALAND GAZETTE No. 160

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.

  1. Surplus before Taxation
$Thousands
2003 2002
Surplus before Taxation is stated after charging:
Audit fees and expenses 110 30
Depreciation 10,508 9,522
Amortisation 1,086 1,086
  1. Income Tax
$Thousands
2003
The Income Tax Expense has been calculated as follows:
Surplus before Taxation 47,278
Income Tax at 33% 15,602
Adjustments to tax for:
Non-deductible expenditure 1,177
Tax Charge 16,779


Next Page →



Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2003, No 160


Gazette.govt.nz — PDF NZ Gazette 2003, No 160




✨ LLM interpretation of page content

🏭 Certification of Financial Statements by Auditor (continued from previous page)

🏭 Trade, Customs & Industry
20 November 2003
Financial Statements, Certification, Gas Retailing, NGC Holdings Limited, Gas (Information Disclosure) Regulations 1997