✨ Financial Statements Notes
UNISON NETWORKS - LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For The Year Ended 31 March 2004
3 Major Transaction
On 1 November 2002 the Company acquired 100% ownership interest of the United Networks Limited electrical distribution assets located in the Rotorua and Taupo regions for $136.196m
The summary of the financial reporting treatment of the acquisition was:
| 2004 | 2003* | |
|---|---|---|
| $'000 | $'000 | |
| Property, plant and equipment as defined under Financial Reporting Standard 3 | - | 106,307 |
| Goodwill arising on acquisition | - | 89,888 |
This transaction was 100% funded by term borrowing as detailed in Note 9.
Goodwill arising on acquisition for financial reporting purposes is further detailed in Note 21
4 INCOME TAX
| 2004 | 2003* | |
|---|---|---|
| $'000 | $'000 |
a) Taxation
Operating Surplus Before Taxation | 9,363 | 3,669 |
Prima Facie Tax @ 33% | 3,090 | 1,211 |
Permanent differences | (108) | (250) |
Timing Differences not recognised | (4,525)| (1,133)|
Prior Period Adjustments | (71) | (272) |
Current Taxation (Benefit)/Expense | (1,614)| (444) |
Taxation Expense (Benefit) is represented by:
| Current Taxation | (71) | (444) |
| Deferred Tax | (1,543)| - |
| | (1,614)| (444) |
b) In respect of network assets there is a deferred tax liability for tax depreciation recoverable amounting to approximately $20.9 million (2003: $14 million) which would crystallise if all network assets were disposed of at their carrying value. There is a further deferred tax asset of $0.8 million in relation to other items. The net liability has not been recognised in the financial statements.
The deferred tax account includes a tax loss benefit of $1.543,000. Subsequent realisation of this benefit is subject to the requirement of Income Tax Legislation being met.
c) Taxation (Refund)/Payable
| 2004 | 2003 | |
|---|---|---|
| $'000 | $'000 | |
| Opening Balance | (1,643) | 40 |
| Current year taxation expense (benefit) | (71) | (444) |
| Taxation paid | 357 | - |
| Taxation Refunded Prior Periods | 253 | - |
| (1,818) | (1,643) |
d) Imputation Credit Account
| 2004 | 2003 | |
|---|---|---|
| $'000 | $'000 | |
| Opening Balance | 4,001 | 2,845 |
| Prior Period Adjustment | 366 | - |
| Taxation Paid | 357 | 1,239 |
| Taxation Refund Received | (253) | - |
| Imputation Credits attached to Dividends Paid in the reporting period | (39) | (83) |
| 4,432 | 4,001 |
e) Deferred Tax (Asset)/Liability
| 2004 | |
|---|---|
| $'000 | |
| Opening Balance | - |
| Movement | (1,543) |
| Closing Balance | (1,543) |
*Comparisons for 2003 include the Hawke's Bay area for the full year and Rotorua/Taupo for 5 months only
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 23
Gazette.govt.nz —
NZ Gazette 2005, No 23
✨ LLM interpretation of page content
🏭
Statement of Significant Accounting Policies for Unison Networks Limited - Lines Business
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Employee Entitlements, Annual Leave, Long Service Leave, Retirement Gratuities, Properties for Sale, Goodwill, Borrowings, Goods and Services Tax, Operating Leases, Unison Networks Limited
🏭 Notes to and Forming Part of the Financial Statements for Unison Networks - Lines Business
🏭 Trade, Customs & IndustryFinancial Statements, Income Tax, Major Transaction, Property Plant Equipment, Goodwill, Taxation Expense, Deferred Tax, Imputation Credit, Taxation Refund, Taxation Payable