✨ Financial Statements
652
NEW ZEALAND GAZETTE, No. 30
19 FEBRUARY 2008
Electra Limited follows the liability method of accounting for deferred tax, applied on a partial basis.
The partial basis considers the cumulative income tax effect of all timing differences. The income tax effect of timing differences is only recognised as deferred tax for those timing differences that can be expected to reverse in the foreseeable future.
Future tax benefits attributable to losses carried forward are recognised in the financial statements only where there is virtual certainty that the benefit of the losses will be utilised.
g) Leases
Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased items, are included in the determination of the operating profit in equal instalments over the lease term.
h) Financial instruments
Financial instruments recognised on the statement of financial position include cash, receivables, finance receivables, accounts payable and borrowings. The particular recognition method is disclosed in the individual policy statement associated with each item.
The Parent and Group have no unrecognised financial instruments.
j) Statement of cash flows
The following are the definitions of the terms used in the Statement of Cash Flows:
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Cash is considered to be cash on hand, short term deposits and current accounts at the banks, net of bank overdrafts.
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Investing activities are those activities relating to the acquisition, holding and disposal of property, plant and equipment and of investments. Investments can include securities not falling within the definition of cash.
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Financing activities are those activities, which result in changes in the size and composition of the capital structure of the Company. This includes both equity and debt not falling within the definition of cash. Dividends paid are included in financing activities.
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Operating activities include all transactions and other events that are not investing or financing activities.
j) Changes in accounting policies
There were no changes in accounting policies during the year.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 30
Gazette.govt.nz —
NZ Gazette 2008, No 30
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Electra Limited - Notes to the financial statements
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💰 Finance & RevenueDeferred tax, Liability method, Leases, Operating lease payments, Financial instruments, Cash flows, Accounting policies, Electra Limited