✨ Financial Statements Notes
4 DECEMBER 2006
NEW ZEALAND GAZETTE, No. 164
4761
THE LINE COMPANY LIMITED
Lines Business Activity
Notes to the Financial Statements
For the Year Ended 31 March 2006
g. Goods & Services Tax
All amounts in the financial statements have been shown exclusive of Goods and Services Tax, with the exception of Accounts Payable and Accounts Receivable which are shown inclusive of Goods and Services Tax.
h. Taxation
The income tax expense recognised for the year is based on the operating surplus before taxation adjusted for permanent differences between accounting and taxable income.
Deferred tax, which is calculated on the comprehensive basis using the liability method, arises from amounts of income or expense recognised for tax purposes in years different from those in which they are dealt with in the financial statements. A debit balance in the deferred taxation account is only carried forward to the extent that there is virtual certainty of its recovery.
Income tax benefits arising from income tax losses are recognised only to the extent of accumulated net credits from timing differences in the deferred taxation account unless there is virtual certainty of their realisation.
i. Statement of Cash Flows
The statement of cash flows is prepared exclusive of Goods and Services Tax, which is consistent with the method used in the statement of financial performance. Definitions of the terms used in the statement of cash flows:
Cash includes coins and notes, demand deposits and other highly liquid investments readily convertible into cash and includes at call borrowings such as bank overdrafts, used by the company and the group as part of their day-to-day cash management.
Operating activities include all transactions and other events that are not investing or financing activities.
Investing activities are those activities relating to the acquisition and disposal of current and non-current investments and any other non-current assets.
Financing activities are those activities relating to changes in the equity and debt capital structure of the company and those activities relating to the cost of servicing the company’s equity capital.
j. Comparative Figures
Comparative information has not been reclassified, to achieve consistency in disclosure with the current year, which is in accordance with Information Disclosure requirements.
k. Changes in Accounting Policies
Accounting policies have been applied on a consistent basis with those of the previous year.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 164
Gazette.govt.nz —
NZ Gazette 2006, No 164
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Notes to the Financial Statements for The Lines Company Limited
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Goods & Services Tax, Taxation, Cash Flows, Comparative Figures, Accounting Policies