✨ Accounting Policies
7 MARCH 2008 NEW ZEALAND GAZETTE, No. 55 1549
Eastland Network Limited – Electricity Lines Business
Statement of Significant Accounting Policies continued
(E) Taxation (continued)
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
-
Where the GST is incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
-
Receivables and payables are stated with the amount of GST included
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
(F) Financial Instruments
The Company is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, investments, accounts receivable, accounts payable and term borrowings. All financial instruments of the Electricity Lines Business are recognised in the statement of financial position and all revenues in relation to financial instruments are recognised in the statement of financial performance.
Except for those items covered by a separate accounting policy, all financial instruments are shown at their fair value.
(G) Foreign Currency
Exchange differences
Short term transactions covered by forward foreign exchange contracts are translated at the exchange rates specified in those contracts. Other foreign currency transactions are translated to New Zealand currency at the exchange rates ruling at the dates of the transactions.
Monetary assets and liabilities in foreign currencies at balance date not covered by forward foreign exchange contracts are translated at the exchange rates ruling on balance date. Exchange differences arising on the translation of monetary assets and liabilities in foreign currencies are recognised in the statement of financial performance.
Monetary assets and liabilities in foreign currencies at balance date covered by forward foreign exchange contracts are translated at the exchange rates specified in those contracts.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 55
Gazette.govt.nz —
NZ Gazette 2008, No 55
✨ LLM interpretation of page content
🏭
Eastland Network Limited – Electricity Lines Business
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Commerce Commission, Electricity Information Disclosure Requirements