New Zealand Gazette – 2009 – No. 182

Page 4393

✨ Financial Statements Notes



9 DECEMBER 2009 NEW ZEALAND GAZETTE, No. 182 4393

Distribution Retail
2008 2008
Old GAAP IFRS Mvmt Note NZIFRS Old GAAP IFRS Mvmt Note
$ $ $ $ $
EQUITY
Share capital 5,264,435 - 5,264,435 199,835 -
Retained earnings 2,276,495 11,650,031 H 8,420,966 (2,315,898) (4,588) G
(894,691) B
479,809 E
(5,107,653) F 274,186 F
(112) D (100) D
21,462 A
(4,375) G
112 D 112 100 D
Fair value through equity reserve - - - - -
Asset revaluation reserve 12,354,703 (11,650,031) H 1,119,554 - -
894,691 B
(479,809) E
Total equity 19,895,633 (5,090,566) 14,805,067 (2,116,063) 269,598
CURRENT LIABILITIES
General bank account - - - - -
Accounts payable & accruals 306,495 - 306,495 2,922,376 -
Provision for employee entitlements 56,922 4,375 G 61,297 59,715 4,588 G
Consumer deposits - - - 108,290 -
Current finance lease 2,666 - 2,666 3,183 -
Taxation payable - - - - -
Provision for dividend - - - - -
Total current liabilities 366,083 4,375 370,458 3,093,564 4,588
NON CURRENT LIABILITIES
Net loans from related parties 5,891,541 - 5,891,541 2,412,008 -
Non-current finance lease 3,554 - 3,554 4,244 -
Deferred tax - 5,107,653 F 5,107,653 - (274,186) F
5,107,653 11,002,748 2,416,250 (274,186)
TOTAL LIABILITIES & EQUITY 26,156,812 21,462 26,178,273 3,393,750 -

A These were additional assets identified during revaluation but excluded from the disclosure accounts

B Revaluation loss taken to the P&L. In transitioning to NZ IFRS in 2007, WGL group used the deemed cost approach which effectively transferred its revaluation reserve to retained earnings. Thus, when the infrastructure assets were revalued in 2008, there was no reserve to offset the decreases in asset values. Under NZ IAS 16, where this is the case, the loss will be taken to the P&L.

C This is the net movement from the transition to NZIFRS:
For distribution, this is the total of:
479,809 E
(5,107,653) F
(112) D
21,462 A
(4,375) G
(4,632,331)

For retail, this is the total of:
(4,588) G
(274,186) F
(100) D
100 D
(210,886)

D All investments are now recorded at fair value under NZIFRS, where previously they had been recorded at cost. The changes in the fair value have been taken through the investment revaluation reserve.

E Deferred tax on revaluation gains are recognised under NZIFRS

F Under previous NZ GAAP the company used the partial method of calculating deferred tax and no liability was recorded. Under NZ IAS 12 deferred tax is calculated based on the difference between the carrying value of an asset and the amount attributed to it for tax purposes. The method generally results in a significantly larger deferred tax liability, especially in relation to revalued assets.

G Sick leave was not recognised as a liability under previous NZ GAAP. NZ IAS 19 requires the company to recognise employees\' unused sick leave entitlements that can be carried forward at balance date, to the extent that the Company anticipates they will be used by staff to cover future absences.

H Distribution assets and metering assets (for retail) were revalued 1 July 2005. This valuation is considered deemed cost under NZIFRS and associated revaluation reserves have been transferred to retained earnings.

I Finance income and expenses are required to be separately disclosed under NZ IFRS. Due to allocation in 2008 Retail had negative finance income, this has been transferred to finance costs

J Computer software had been previously accounted for as property, plant and equipment. It has now been accounted for as an intangible asset as required by NZ IFRS

K Adjusted for deferred tax movement which is recognised under NZ IFRS



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Gazette.govt.nz — PDF NZ Gazette 2009, No 182




✨ LLM interpretation of page content

💰 Notes to the Financial Statements (continued from previous page)

💰 Finance & Revenue
Financial liabilities, Creditors, Borrowings, Credit risk, Bank guarantees, Interest rate risk, Currency risk, Liquidity risk, Maturity analysis, Sensitivity analysis