✨ Financial Statements Notes
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2006
(i) Statement of Cash Flows
The following are the definitions of the terms used in the Statement of Cash Flows:
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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.
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Operations comprise the transmission of bulk electricity, and the related support, maintenance, administration and interest costs.
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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.
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Financing include changes in equity, borrowings and dividends paid on equity.
(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 2006, No 149
Gazette.govt.nz —
NZ Gazette 2006, No 149
✨ LLM interpretation of page content
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Notes to the Financial Statements for Transpower New Zealand Limited Lines Business
(continued from previous page)
🏭 Trade, Customs & Industry22 November 2006
Financial Statements, Accounting Policies, Cash Flows, Taxation, Foreign Currencies, Transpower, Lines Business, 2006