✨ Financial Statements and Accounting Policies
NGC Gas Transmission Activities
Statement of Accounting Policies
For the Year Ended 30 June 2006
For the purposes of the Gas (Information Disclosure) Regulations 1997
e) Specific Accounting Policies (Continued)
iv) Leased Assets
Certain plant, equipment, land and buildings is leased. Under operating leases, all the risks and benefits of ownership are effectively retained by the lessor. Operating lease payments are expensed in the period in which they are incurred.
v) Taxation
The income tax expense recognised for the period is based on the operating surplus before taxation, adjusted for permanent differences between accounting and tax rules. The impact of all timing differences between accounting and taxable income is recognised as a deferred tax liability or asset. This is the comprehensive basis for the calculation of deferred tax under the liability method. A deferred tax asset, or the effect of tax losses carried forward, is recognised in the financial statements only where there is virtual certainty that the benefit of the timing differences, or losses, will be utilised.
vi) Deferred Expenditure
Deferred expenditure is expenditure which provides benefits beyond the current accounting period. These expenditures include the connection of new customers to the gas transportation system and other payments for which future benefits are gained and are amortised to the statement of financial performance over periods up to 10 years.
f) Comparatives
The presentation of certain comparatives has been restated to ensure consistency with the current year’s disclosures.
g) Changes in Accounting Policies
There have been no changes in accounting policies. These policies have been applied on a consistent basis during the year.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 154
Gazette.govt.nz —
NZ Gazette 2006, No 154
✨ LLM interpretation of page content
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Certification of NGC Gas Transmission Financial Statements
(continued from previous page)
💰 Finance & Revenue28 November 2006
Financial Statements, Gas Transmission, Certification, Gas (Information Disclosure) Regulations 1997