Financial Statements Notes




NELSON ELECTRICITY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year to 31 March 2004

2.7 Operating Leases

Leases where the lessor retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Payments under these leases are recognised as expenses in the periods in which they occur.

2.8 Network Revenue

The Company’s principal source of revenue arises from the supply of network services to electricity traders who trade across the network. Terms and conditions for supply of these services are provided for in “use of system” agreements signed with the electricity retailers.

2.9 Employee Entitlements

Provision is made in respect of the company’s liability for employees annual leave. Annual leave is calculated on an actual entitlement basis at current rates of remuneration.

2.10 Statement of Cash Flows

Cash means cash balances on hand, held in bank accounts, demand deposits and other highly liquid investments in which the company invests as part of its day to day cash management.

Operating activities include all cash received from all income sources of the company and records the cash payments made for the supply of goods and services.

Investing activities are those activities relating to the acquisition and disposal of non current assets.

Financing activities comprise the change in equity and debt capital structure of the company.

2.11 Changes in Accounting Policies

There have been no changes in accounting policies during the year. All policies have been applied on bases consistent with those used in other years.


| | Year Ended | Year Ended |
| | 31-Mar-04 | 31-Mar-03 |
| | $'000 | $'000 |

3. Taxation

Surplus Before Taxation | 3,060 | 3,057
Taxation @ 33 % | 1,010 | 1,009
Under Provision from Prior Year | 0 | (2)
Effect of Permanent Differences | (150) | 173

Tax Expense as per Statement of Financial Performance | 860 | 1,180
Comprising:
Current Taxation | 1,169 | 1,038
Deferred Taxation | (309) | 142


Imputation Credit Account

Balance 1 April | 725 | 451
Imputation Credits Attached to Dividends Paid in the Year | (936) | (837)
Income Tax Payments During the Year | 970 | 1,111
Refunds Received From Inland Revenue | 0 | 0
Balance 31 March | 759 | 725


4. Deferred Taxation

Balance 1 April | 300 | 158
Adjustment Prior Period | (306) | 0
Current Period Provision | (3) | 142
Balance 31 March | (9) | 300



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Online Sources for this page:

VUW Te Waharoa PDF NZ Gazette 2005, No 8


Gazette.govt.nz PDF NZ Gazette 2005, No 8





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Financial statements, Income, Expenditure, Equity, Nelson Electricity Limited