✨ Financial Statements Notes
5062
NEW ZEALAND GAZETTE, No. 200
30 NOVEMBER 2005
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2005
(i) Statement of Cash Flows
The following are the definitions of the terms used in the Statement of Cash
Flows:
(i) Cash and bank means coins, notes and demand deposits. Cash includes
liabilities which are the negative form of the above, such as the bank
overdraft.
(ii) Operations comprise the transmission of bulk electricity, and the related
support, maintenance, administration and interest costs.
(iii) Investments comprise the purchase, holding and disposal of
fixed assets and investments. Capitalised interest on capital work in
progress is also included in investing activities.
(iv) Financing include changes in equity, borrowings and dividends paid on equity.
Cash flows arising from short term loans are disclosed as a net cash
movement due to the volume of transactions involved.
(j) Taxation
The Transpower Lines Business follows the liability method of accounting for deferred tax
applied on a partial basis.
The tax expense charged against the surplus for the year is the estimated liability in
respect of that surplus after allowance for permanent differences plus any
adjustments arising from prior years.
The partial basis considers the cumulative income tax effect of all timing differences.
The income tax effect of timing differences is only recognised as deferred tax for
those timing differences that can be expected to reverse in the foreseeable future.
Timing differences that are not recognised in the Statement of Financial Position are
disclosed in the Deferred tax liability memorandum account in Note 6.
Future tax benefits attributable to losses carried forward are recognised in the
financial statements only where there is virtual certainty that the benefit of the
losses will be utilised.
(k) Foreign Currencies
Transactions denominated in a foreign currency are converted at the exchange rate
at the date of the transaction. Monetary assets and liabilities at balance date are
translated at exchange rates current at balance date. Where transactions are
hedged they are translated at the hedge rate.
Gains and losses due to currency fluctuations on foreign currency receivables and
payables are included in the Statement of Financial Performance.
Exchange differences and associated costs on hedging transactions undertaken to
establish the price of a particular purchase are deferred and are included in the
measurement of the purchase transaction as at the transaction date.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 200
Gazette.govt.nz —
NZ Gazette 2005, No 200
✨ LLM interpretation of page content
🏭
Notes to the Financial Statements for Transpower New Zealand Limited Lines Business
(continued from previous page)
🏭 Trade, Customs & Industry30 June 2005
Accounting Policies, Financial Statements, Transpower, Lines Business, Cash Flows, Taxation, Foreign Currencies