✨ Accounting Policies
NGC HOLDINGS LIMITED
GAS RETAILING ACTIVITIES
STATEMENT OF ACCOUNTING POLICIES (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2007
I) LEASED ASSETS
Operating leases
Lease payments under operating leases, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased property, plant and equipment are expensed to the statement of financial performance in equal instalments over the lease term.
J) PROVISIONS
Employee entitlements
Employee entitlements to salaries and wages, annual leave, long-term leave and other benefits are recognised when they accrue to employees.
Other provisions
A provision is recognised as a liability where a constructive or legal obligation exists to settle items in the foreseeable future. A provision is recognised where the likelihood of a resultant liability is considered more probable than not. Where the likelihood of a resultant liability is more than remote but insufficient to warrant a provision, such events are disclosed as contingent liabilities.
K) FINANCIAL INSTRUMENTS
Derivative financial instruments are used within predetermined policies and limits in order to manage its exposure to fluctuations in foreign currency exchange rates and interest rates.
Derivative financial instruments that are designated as hedges of specific items are recognised on the same basis as the underlying hedged items.
No speculative transactions are conducted nor are any derivative financial instruments held for trading purposes.
Fees and other costs incurred in raising debt finance not directly attributable to the acquisition of subsidiaries are capitalised and amortised over the term of the debt instrument or debt facility.
Interest income and expenses are recognised on an accrual basis. Where a debt instrument is issued at a discount or premium, the discount or premium is capitalised and amortised over the life of the instrument.
Fair value adjustments on derivative instruments acquired are initially recognised in the statement of financial position as a mark to market adjustment. Subsequent to initial recognition, the mark to market adjustment is amortised to the statement of financial performance over the period of the underlying derivative.
CHANGES IN ACCOUNTING POLICIES
All accounting policies have been applied on bases consistent with those applied for the year ended 30 June 2006.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2007, No 132
Gazette.govt.nz —
NZ Gazette 2007, No 132
✨ LLM interpretation of page content
💰
Statement of Accounting Policies for NGC Holdings Limited
(continued from previous page)
💰 Finance & RevenueAccounting policies, Leased assets, Operating leases, Employee entitlements, Provisions, Financial instruments, Derivatives, Debt finance, Interest, Fair value adjustments