✨ Financial Statements
Notes to and Forming Part of the Financial Statements
For the year ended 30 June 2007
POWERCO
GAS DIVISION
1. REVENUE AND EXPENDITURE
Operating Revenue
| Year to | Year to |
|---|---|
| 30 June 2007 | 30 June 2006 |
| NZ$000 | NZ$000 |
Line charge revenue | 54,563 | 50,349
Interest revenue | — | —
Total | 54,563 | 50,349
Other Income
Hedging gain | 5,359 | 1,835
EXPENDITURE
Operating expenses
Repairs and maintenance costs | 8,158 | 7,002
Administration expenses
Human resource costs | 162 | 183
Bad debts | 57 | 6
Corporate & administration | 6,547 | 7,459
Marketing & advertising | 205 | 209
Consulting & legal expenses | 616 | 1,324
Total administration expenses | 7,587 | 9,181
Other expenses
Depreciation on network assets | 9,804 | 9,440
Depreciation on plant and equipment | 1,086 | —
Amortisation of intangibles | 453 | —
Total other expenses | 11,343 | 9,440
Finance costs
Interest expense | 19,660 | 20,701
Total expenditure | 46,745 | 46,324
2. TAXATION
Income tax recognised in the Income Statement
Tax expense / (benefit) NZ$000
| Year to | Year to |
|---|---|
| 30 June 2007 | 30 June 2006 |
Current tax expense / (benefit) | (5,495) | (6,204)
Deferred tax on temporary differences | 7,307 | 7,533
Effect of changes in tax rates and laws | (2,885) | 1,329
Total | (1,073) | 2,658
The total charge for the period can be reconciled to the accounting profit as follows:
Operating surplus before taxation | 13,168 | 5,661
Prima facie tax on @ 33% | 4,346 | 1,868
Tax effect of expenses/(revenue) that are not deductible in determining taxable profit | (2,534) | (539)
Effect of changes in tax rates | (2,885) | —
Taxation expense / (benefit) | (1,073) | 1,329
The tax rate used in the above reconciliation is the corporate tax rate of 33% payable by New Zealand corporate entities on taxable profits under New Zealand tax law. The corporate tax rate in New Zealand is to change from 33% to 30% with effect from 1 April 2008. This revised rate has not impacted the current tax payable for this current year but will do so in future periods. However, the impact of the change in tax rate has been taken into account in the measurement of deferred taxes at the end of the reporting period.
All temporary differences have been recorded in the financial statements.
Income tax recognised directly in equity
Deferred tax - revaluation of financial instruments treated as cash flow hedges | 486 | —
Deferred tax - temporary differences
| Property, plant & equipment | Cash flow hedges | TOTAL | |
|---|---|---|---|
| NZ$000 | NZ$000 | NZ$000 |
Balance 30 June 2005 | 19,304 | — | 19,304
Charged / (credited) to the Income Statement | 7,533 | — | 7,533
Charged to equity | — | — | —
Balance 30 June 2006 | 26,837 | — | 26,837
Charged / (credited) to the Income Statement | 5,266 | 2,041 | 7,307
Charged to equity | (2,885) | 486 | (2,399)
Change in tax rates | — | — | —
Balance 30 June 2007 | 29,218 | 2,527 | 31,745
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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
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💰 Powerco Gas Division Financial Statements for the year ended 30 June 2007
💰 Finance & RevenueFinancial Statements, Powerco, Gas Division, Revenue, Expenditure, Taxation