✨ Financial Statements Notes
4608 NEW ZEALAND GAZETTE, No. 158 29 NOVEMBER 2006
Notes to the financial statements (continued)
For the year ended 31 March 2006
Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.
(E) Financial instruments
The Company is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, investments, accounts receivable, accounts payable and term borrowings. All financial instruments are recognised in the statement of financial position and all revenues in relation to financial instruments are recognised in the statement of financial performance.
Except for those items covered by a separate accounting policy, all financial instruments are shown at their fair value.
(F) Employee Entitlements
A liability for annual leave and long service leave is accrued and recognised in the statement of financial position. The liability is calculated on an actual entitlement basis.
(G) Foreign Currency Transactions
Transactions denominated in foreign currencies are translated into the reporting currency using the exchange rate in effect at the transaction date.
Monetary items receivable or payable in a foreign currency, other than those resulting from short term transactions covered by forward exchange contracts, are translated at balance date at the closing rate. For transactions covered by short term forward exchange contracts, the rates specified in those contracts are used as the basis for measuring and reporting the transaction.
Exchange differences on foreign currency balances are recognised in the Statement of Financial Performance.
(H) Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those in the prior year.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 158
Gazette.govt.nz —
NZ Gazette 2006, No 158
✨ LLM interpretation of page content
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Notes to the Financial Statements for Eastland Network Limited
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Financial Instruments, Employee Entitlements, Foreign Currency Transactions, Tax Effect Accounting