New Zealand Gazette – 2006 – No. 162

Page 4713

✨ Financial Statements



1 DECEMBER 2006 NEW ZEALAND GAZETTE, No. 162 4713

1.7 Research and Investigation and Development Expenditure

Research and investigation costs are charged to expense in the year in which they are incurred.
Development expenditure is capitalised to the extent that future benefits are expected to accrue.

1.8 Employee Entitlements

Employee entitlements to salaries and wages, annual and long service leave and other benefits are recognised when they accrue to employees. Allowance is made for the present value of future staff retirement gratuity benefits. The calculations provide also for the probability of the employees completing the appropriate period of service.

1.9 Financial Instruments

Financial instruments carried in the statement of financial position include cash and bank balances, receivables and trade creditors. These instruments are generally carried at their estimated fair value. For example receivables are carried net of estimated doubtful receivables. The Company may also on occasions enter into foreign currency forward exchange contracts, in order to reduce exposure to fluctuations in foreign currency values in respect of equipment sourced offshore.

1.10 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.

1.11 Comparative amounts

To ensure consistency with the current year, comparative figures have been reclassified where appropriate.

1.12 Changes in Accounting Policies

All policies have been applied on a basis consistent with previous years.

2006 2005
$000's $000's
2. OPERATING REVENUE
Other operating revenue includes:
Donated Assets 3,067 1,932
Capital Contributions 858 481
Other operating revenue 83 27
4,008 2,440

3. INCOME TAX

3.1 Income Tax Expense

2006 2005
$000's $000's
Operating Surplus before Taxation 6,583 3,158
Add/(Deduct)
Non Deductible Costs 4,119 3,975
Non Assessable Revenue (5,026) (2,962)
Taxable Income 5,676 4,171
Taxation Charge @ 33% 1,873 1,376
Prior Year Under/(Over) Provision (284) -
Tax Expense 1,589 1,376

The Income Tax Expense is represented by:
| | 2006 | 2005 |
|-----------------------|-----------|-----------|
| Tax Payable in Respect of the Current Year | 969 | 856 |
| Deferred Tax Liability| 620 | 520 |
| | 1,589 | 1,376 |



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 162


Gazette.govt.nz — PDF NZ Gazette 2006, No 162




✨ LLM interpretation of page content

🏭 Marlborough Lines Limited Financial Statements for the Year Ended 31 March 2006 (continued from previous page)

🏭 Trade, Customs & Industry
Financial statements, Revenue, Expenditure, Marlborough Lines Limited, Electricity Information Disclosure Requirements, Cash Flows, Operating Activities, Investing Activities, Financing Activities