✨ Financial Adjustments and Events
572
NEW ZEALAND GAZETTE, No. 25
15 FEBRUARY 2008
17. Adjustments for NZ IFRS
As outlined in note 1, the company’s audited general purpose financial statements for the year ended 31 March 2007 were prepared under NZ IFRS, whereas these regulatory financial statements have been prepared under previous GAAP. The use of previous GAAP is permitted by the Requirements, and postpones the considerable amount of additional work which would be required to convert and reconcile previously disclosed prior year comparative information under previous GAAP to NZ IFRS.
A summary of the key changes made to convert from NZ IFRS to previous GAAP for the purpose of these regulatory financial statements follows.
Note that the comparative disclosures for the year ended 31 March 2006 in these regulatory financial statements are identical to those disclosed last year and were prepared on a consistent basis with the company’s audited general purpose financial statements for the year ended 31 March 2006.
If the reported net surplus after tax for the year ended 31 March 2007 was restated in these regulatory financial statements so as to comply with NZ IFRS, the net surplus would be as follows:
| $million | |
|---|---|
| Net surplus after tax for the year ended 31 March 2007 as reported in these regulatory financial statements | 36.4 |
| Add upwards revaluation of investment property not recognised in these regulatory financial statements | 0.1 |
| Add a difference in the treatment of deferred tax. A $0.1m deferred tax benefit was recognised under NZ IFRS in the year ended 31 March 2007, whereas a $6.5m deferred tax expense is recognised under previous GAAP in these regulatory financial statements | 6.6 |
| Add interest rate swap valuation movements recognised under NZ IFRS but not recognised in these regulatory financial statements under previous GAAP | 0.3 |
| Deduct downwards revaluations of property, plant and equipment assets not permitted to be offset within asset classes under NZ IFRS, such write-down expenses not recognised in these regulatory financial statements | (0.4) |
| Net surplus after tax for 2007 if the company had adopted NZ IFRS for these regulatory financial statements | 43.0 |
If the reported statement of financial position as at 31 March 2007 in these regulatory financial statements was restated so as to comply with NZ IFRS, key changes to these regulatory financial statements would be as follows:
-
Deferred tax – the company’s deferred tax liability at 31 March 2007 would be approximately $212m, $148m greater than as reported, with equity correspondingly $148m lower.
-
Revaluation reserve – as the company’s revaluation reserve would be set to zero on NZ IFRS adoption, the revaluation reserve as at 31 March 2007 would stand at approximately $125m, $490m lower; with other ordinary equity correspondingly $490m higher.
A variety of other, relatively minor adjustments would also be required to the statement of financial position, principally reclassifications between categories of assets.
For a more detailed description, refer to note 43 of the company’s general purpose audited financial statements for the year ended 31 March 2007.
18. Significant events after balance date
There were no significant events between the preparation and authorisation of these accounts on 5 December 2007.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 25
Gazette.govt.nz —
NZ Gazette 2008, No 25
✨ LLM interpretation of page content
💰
Adjustments for NZ IFRS
(continued from previous page)
💰 Finance & RevenueNZ IFRS, GAAP, Financial Adjustments, Regulatory Financial Statements, Net Surplus, Deferred Tax, Revaluation Reserve
💰 Significant events after balance date
💰 Finance & RevenueSignificant Events, Balance Date, Financial Statements