✨ Financial Accounting Policies
30 NOVEMBER 2007
NEW ZEALAND GAZETTE, No. 133
3475
l) Contributed capital
Contributed capital represents the funds provided by Powerco Limited to the Powerco gas division.
m) Dividend distribution
Dividend distribution to the Powerco’s shareholders is recognised as a liability in the Division’s financial statements in the period in which the dividends are declared.
n) Leases
Operating lease payments, where the lessors effectively retain substantially all the risks and rewards of ownership of the leased items, are included in the determination of profit before taxation in equal instalments over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
o) Revenue recognition
Revenue is recognised at the fair value of sales of goods and services, net of GST, rebates, discounts and capital contributions.
Revenue from the rendering of services is recognised in the accounting period in which the services are rendered based upon usage or volume throughput during that period.
p) Taxation
The amount recognised for current tax is based on the net profit for the period as adjusted for non-assessable and non-deductible items. It is calculated using tax rates that have been enacted or substantively enacted by the reporting date.
Deferred income tax is provided, using the comprehensive balance sheet liability method, on all temporary differences at the balance sheet date between the tax base of the assets and liabilities and their carrying amounts in the financial statements.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax to be utilised.
Deferred income tax assets and liabilities are measured at tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at balance sheet date.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow the manner in which the Division expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the division intends to settle its current tax assets and liabilities on a net basis.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2007, No 133
Gazette.govt.nz —
NZ Gazette 2007, No 133
✨ LLM interpretation of page content
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Powerco Gas Division Accounting Policies
(continued from previous page)
🏭 Trade, Customs & Industry27 November 2007
Accounting Policies, Contributed Capital, Dividend Distribution, Leases, Revenue Recognition, Taxation, Financial Statements, Deferred Tax