✨ Financial Statements and Accounting Policies
30 NOVEMBER 2004
NEW ZEALAND GAZETTE, No. 157
3855
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
Management fees allocated to the Distribution business have been calculated and presented under the Avoidable Cost Allocation Methodology (ACAM) for the 2004 results. This has resulted in the Management fee being $0.01million higher than was actually charged in the current year. Otherwise, there have been no changes in accounting policies. These policies have been applied on a consistent basis during the year.
- Surplus before Taxation
| $ Thousands | 2004 | 2003 |
|---|---|---|
| Surplus before Taxation is stated after charging/(crediting): | ||
| Audit fees and expenses | 33 | 31 |
| Depreciation | 4,962 | 4,319 |
| Amortisation | - | 767 |
| Leasing Costs | 235 | 197 |
| Asset Acquisition Feasibility Cost | - | 993 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2004, No 157
Gazette.govt.nz —
NZ Gazette 2004, No 157
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