New Zealand Gazette – 2007 – No. 132

Page 3443

✨ Financial Statements Notes



30 NOVEMBER 2007
NEW ZEALAND GAZETTE, No. 132
3443

NGC HOLDINGS LIMITED
GAS TRANSMISSION ACTIVITIES

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2007

  1. OPERATING SURPLUS BEFORE INTEREST AND INCOME TAX
2007 2006
$000 $000
Operating surplus before interest and income tax includes
Increase/(decrease) in provision for doubtful debts 198 (147)
Rental and operating lease costs 96 108
Loss/(gain) on disposal of property, plant and equipment 725 (72)
Directors’ fees 86 34
Audit fees paid to principal auditors 103 118
Depreciation 16,527 13,954
Provision release (3,708) -
  1. INCOME TAX EXPENSE
NOTE 2007 2006
$000 $000
Operating surplus before income tax 31,123 18,640
Prima facie tax at 33% 10,271 6,152
Plus/(less) tax effect of permanent differences:
Prior period adjustment 3 (42)
Adjustment to deferred tax for change in company tax rate 1,534 -
Non-taxable income (862) (181)
Other non-deductible items 821 1,185
Income tax expense 11,767 7,114
The income tax expense is represented by:
Current tax 9,562 10,691
Deferred tax 2,205 (3,577)
Total 11,767 7,114

In May 2007 the Government changed the corporate tax rate to 30% effective from the 2008/2009 income year. In accordance with SSAP 12, the deferred tax liability has been restated, reflecting the change in corporate tax rate, which applies for Vector from 1 July 2008. As a result of the deferred tax restatement there is a reduction in the deferred tax liability of $6.3 million, an increase in equity of $7.8 million and a $1.5 million increase in the income tax expense in the statement of financial performance.

  1. DEFERRED TAX
2007 2006
$000 $000
Balance at beginning of the year 76,878 80,448
On surplus for the year 671 (3,577)
Prior period adjustment 141 7
Decrease relating to change in company tax rate (6,310) -
Balance at end of the year 71,380 76,878

The decrease in the deferred tax liability of $6.3 million resulting from the change in the corporate tax rate to 30% effective from the 2008/2009 income year is explained in Note 2 above.



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VUW Te Waharoa — PDF NZ Gazette 2007, No 132


Gazette.govt.nz — PDF NZ Gazette 2007, No 132




✨ LLM interpretation of page content

💰 Certification of Financial Statements by Directors (continued from previous page)

💰 Finance & Revenue
30 November 2007
Financial statements, Accounting policies, Gas transmission, Income recognition, GST, Receivables, Inventories, Income tax, Property, Plant, Equipment, Depreciation, Leased assets, Employee entitlements, Financial instruments, Foreign currencies