New Zealand Gazette – 2005 – No. 138

Page 3345

✨ Financial Statements



23 AUGUST 2005 NEW ZEALAND GAZETTE, No. 138 3345

1.7 Employee Entitlements

Employee entitlements to salaries and wages, annual and long service leave and other benefits are recognised when they accrue to employees. Allowance is made for the present value of future staff retirement gratuity benefits. The calculations provide also for the probability of the employees completing the appropriate period of service.

1.8 Financial Instruments

Financial instruments carried in the statement of financial position include cash and bank balances, receivables and trade creditors. These instruments are generally carried at their estimated fair value. For example receivables are carried net of estimated doubtful receivables. The Company may also on occasions enter into foreign currency forward exchange contracts, in order to reduce exposure to fluctuations in foreign currency values in respect of equipment sourced offshore.

1.9 Foreign Currency Transactions

Transactions denominated in foreign currencies are translated into the reporting currency using the exchange rate in effect at the transaction date. Monetary items receivable or payable in a foreign currency, other than those resulting from short term transactions covered by forward exchange contracts, are translated at balance date at the closing rate. For transactions covered by short term forward exchange contracts, the rates specified in those contracts are used as the basis for measuring and reporting the transaction. Exchange differences on foreign currency balances are recognised in the Statement of Financial Performance.

1.10 Changes in Accounting Policies

All policies have been applied on a basis consistent with previous years.

2. OPERATING REVENUE

2005 2004
$000's $000's
Donated Assets 1,932 1,800
Capital Contributions 481 426
Other operating revenue 27 8
2,440 2,234

3. INCOME TAX

3.1 Income Tax Expense

2005 2004
$000's $000's
Operating Surplus before Taxation 3,158 2,271
Add/(Deduct):
Non Deductible Costs 3,975 3,905
Non Assessable Revenue (2,962) (2,656)
Taxable Income 4,171 3,520
Taxation Charge @ 33% 1,376 1,162
Prior Year Under/(Over) Provision - (2)
Tax Expense 1,376 1,159

The Income Tax Expense is represented by:

2005 2004
Tax Payable in Respect of the Current Year 856 1,159
Deferred Tax Liability 520 -
1,376 1,159


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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2005, No 138


Gazette.govt.nz — PDF NZ Gazette 2005, No 138




✨ LLM interpretation of page content

🏭 Financial Statements Notes for Marlborough Lines Limited (continued from previous page)

🏭 Trade, Customs & Industry
Accounting Policies, Employee Entitlements, Financial Instruments, Foreign Currency Transactions, Accounting Policies