✨ Financial Statements
12 DECEMBER 2006
NEW ZEALAND GAZETTE, No. 170
4939
Notes to and Forming Part of the Financial Statements
For the year ended 30 June 2006
POWERCO
GAS DIVISION
10 RECONCILIATION OF NZ IFRS WITH AMOUNTS PREVIOUSLY RECORDED UNDER NZ GAAP
Powerco Limited changed its accounting policies on 1 April 2004 to comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS). The transition to NZ IFRS is accounted for in accordance with NZ IFRS 1 First time Adoption of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS 1).
An explanation of how the transition from superseded policies to NZ IFRS has affected the company and consolidated entity's financial position, financial performance and cash flows is set out in the following tables and the notes that accompany the tables.
(a) Reconciliation of Net Profit/(Loss) after Tax
12 months to 30 June 2005
NZ$000
Total reported under NZ GAAP 6,459
NZ IFRS adjustments: -
Restated balances under NZ IFRS 6,459
(b) Reconciliation of Equity with NZ GAAP
12 months to 30 June 2005
NZ$000
Total reported under NZ GAAP 117,093
NZ IFRS adjustments:
- Deferred tax on a comprehensive basis (a) (19,303)
- Fair value of network assets (b) (12,676)
Restated balances under NZ IFRS 85,114
(c) Reconciliation of Liabilities with NZ GAAP
12 months to 30 June 2005
NZ$000
Total reported under NZ GAAP 218,920
NZ IFRS adjustments:
- Deferred tax on a comprehensive basis (a) 19,304
- Reclassification of deferred funding (c) (2,259)
Restated balances under NZ IFRS 295,965
(d) Reconciliation of Assets with NZ GAAP
12 months to 30 June 2005
NZ$000
Total reported under NZ GAAP 396,014
NZ IFRS adjustments:
- Fair value of network assets (b) (12,676)
- Reclassification of deferred funding (c) (2,259)
Restated balances under NZ IFRS 381,079
Adjustments were made at 1 April 2004 to restate the opening financial position of the company to a position consistent with the accounting policies specified in the Statement of Accounting Policies.
(a) Under superseded policies deferred tax was recognised on a partial basis. Under NZ IFRS deferred tax is determined using the balance sheet method in respect of temporary differences between the carrying amount of the asset and liabilities in the financial statements and their corresponding tax base. The adjustment represents the shift from one tax base to another.
(b) The Group elected to measure network assets on transition to NZ IFRS at fair value and has used that fair value as the item's deemed cost at that date. The effect of the revaluation is to increase the carrying value by $136.9 million (parent $128.4 million).
(c) Under superseded policies deferred funding costs were recognised as non-current assets. Under NZ IFRS deferred funding costs are included in borrowing to which they relate.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 170
Gazette.govt.nz —
NZ Gazette 2006, No 170
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Powerco Gas Division Financial Statements
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