✨ Financial Accounting Policies
NGC HOLDINGS LIMITED
GAS TRANSMISSION ACTIVITIES
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 30 JUNE 2008
Operating leases
Payments made under operating leases, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased property, plant and equipment are recognised in the income statement on a straight-line basis over the lease term. Lease incentives received are recognised as an integral part of the total lease expense over the term of the lease. Property, plant and equipment used under operating leases are not recognised in the balance sheet.
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
The allocation of debt and equity items is in accordance with the principles and rules of ACAM.
L) FOREIGN CURRENCY TRANSLATION
Transactions in foreign currencies are translated to the respective functional currencies of group entities at exchange rates at the dates of the transactions unless transactions are hedged by foreign currency derivative instruments in which case hedge accounting is applied as stated in note above. Foreign currency differences arising on translation are recognised in the income statement. At balance date, foreign monetary assets and liabilities are translated at the functional currency closing rate, and exchange variations arising from these translations are included in the income statement.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at historic cost are not retranslated at balance date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
CHANGES IN ACCOUNTING POLICIES
The Vector group elected to adopt 1 July 2006 as its transition date to the requirements of NZ IFRS in accordance with NZ IFRS 1, First-time Adoption of New Zealand Equivalents to International Financial Reporting Standards. An explanation of how the transition to NZ IFRS has affected the reported financial position and financial performance of the Vector Group is provided in detail in its annual report for the year ended 30 June 2008.
All accounting policies that applies to Vector group after transition to NZIFRS have been applied to these set of financial statements for the year ended 30 June 2008 and comparative year ended 30 June 2007.
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NZ Gazette 2008, No 185
✨ LLM interpretation of page content
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NGC Holdings Limited Financial Accounting Policies
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🏭 Trade, Customs & IndustryAccounting policies, Operating leases, Employee entitlements, Provisions, Financial instruments, Foreign currency translation, NZ IFRS