✨ Financial Statements Notes
22 DECEMBER 2004 NEW ZEALAND GAZETTE, No. 173 4335
TOP ENERGY LIMITED
NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS
STATEMENT OF ACCOUNTING POLICIES
FOR THE 12 MONTHS ENDED 31 MARCH 2004
8 Financial Instruments
All financial instruments are recognised in the Statement of Financial Position except for off balance sheet instruments such as guarantees.
Financial instruments including cash, bank, accounts receivable, accounts payable, and term debt are generally carried at their estimated fair value.
Top Energy Ltd has entered into various financial instruments with off-balance sheet risk for the primary purpose of reducing its exposure to interest. While these financial instruments are subject to risk that market rates may change subsequent to acquisition, such changes would generally be offset by opposite effects on the items being hedged.
Changes in Accounting Policies
During the year, the Company changed its accounting policy with respect to taxation. Under the new policy the comprehensive method is adopted to account for the income tax effect of permanent and timing differences. Previously the partial basis had been used. The change has been made in anticipation of changes in international accounting standards. The change has resulted in an increase in the tax charge for the year and the deferred tax liability for the Lines business of $4,549,000.
The Company changed its accounting policy with respect to the carrying value of land and buildings fixed assets. Under the new policy land and buildings are stated at valuation. The change has resulted in increasing the value of Lines business fixed assets at balance date by $1,126,288.
The Company changed its accounting policy with respect to the depreciation of the distribution system asset. Previously the policy was to use infrastructure accounting, this has changed to cost/revaluation less depreciation under FRS 3 - Accounting for Property, Plant and Equipment. The new policy depreciates component assets of the distribution system based on their economic lives. The change has been made to conform with FRS3. The change has resulted in an increase in the depreciation charge, and reduction of profit for the Line business for the year of $527,558.
There were no other material changes in accounting policy.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2004, No 173
Gazette.govt.nz —
NZ Gazette 2004, No 173
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Notes to the Special Purpose Financial Statements for Top Energy Limited
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