New Zealand Gazette – 2007 – No. 133

Page 3476

✨ Financial Statements and Accounting Policies

3476 NEW ZEALAND GAZETTE, No. 133 30 NOVEMBER 2007

Current and deferred tax is recognised as an expense or income in the Income Statement, except when it relates to items credited or debited directly to equity, in which case the deferred tax or current tax is also recognised directly in equity, or where it arises from the initial accounting for a business combination, in which case it is taken into account in the determination of goodwill or excess.

q) Inter-division account

The inter-division account represents the balance due to other Divisions within Powerco Limited. The balance is the result of inter-divisional transactions since the Division was established.

r) Comparative amounts

A change has been made to the Division’s comparative numbers in the Balance Sheet in relation to other financial liabilities. Previously financial assets in relation to hedges were disclosed within other financial liabilities, but it was decided that it would provide more clarity if disclosed separately. The effect of this reclassification is as follows (’000):

	Original disclosure	Adjustment	Revised disclosure
Other financial liabilities	(11,361)	(1,719)	(13,080)
Other financial assets	-	1,719	1,719

A change has also been made to the Division’s comparative numbers in the Balance Sheet in relation to retained earnings and reserves. Previously an adjustment related to the restatement of balances due to the transition to NZ IFRS was taken up against the Reserves figure. The correct treatment should have been to take the adjustment to Retained Earnings as part of the transition to NZ IFRS. The effect of this reclassification is as follows (’000):

	Original disclosure	Adjustment	Revised disclosure
Retained earnings	(2,945)	(31,981)	(34,926)
Reserves	(33,599)	31,981	(1,618)

A change has also been made to the Division’s comparative numbers in the Balance Sheet in relation to provisions, tax payable and trade and other payables. Previously the amount related to the provision for employee entitlements had been included in the trade and other payables amount. It was decided it would provide more clarity to disclose this provision separately. Previously a payable amount in relation to GST payable was disclosed as tax payable. This balance should have been disclosed in trade and other payables. An adjustment has been made to correct this. The effect of this reclassification is as follows (’000):

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