✨ Financial Statements
3932 NEW ZEALAND GAZETTE, No. 158 26 NOVEMBER 2010
VECTOR LIMITED & SUBSIDIARIES
GAS DISTRIBUTION ACTIVITIES
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2010
1. PROFIT BEFORE INTEREST AND INCOME TAX
| 2010 | 2009 | |
|---|---|---|
| $000 | $000 | |
| Profit before interest and income tax includes: | ||
| Bad debts written off | 16 | 25 |
| Decrease in provision for doubtful debts | (144) | (13) |
| Rental and operating lease costs | 602 | 815 |
| Directors’ fees | 100 | 114 |
| Audit fees | 115 | 121 |
| Personnel expenses | 9,268 | 8,303 |
| (Profit)/loss on disposal of property, plant and equipment and software | (44) | 17 |
| Depreciation of property, plant and equipment: | ||
| Distribution systems | 9,515 | 10,875 |
| Plant, vehicles and equipment | 1,137 | 1,223 |
| Amortisation of software intangibles | 1,230 | 2,078 |
2. FINANCE COSTS
| 2010 | 2009 | |
|---|---|---|
| $000 | $000 | |
| Interest expense | 19,192 | 22,246 |
| Capitalised interest | (477) | (450) |
| Total | 18,715 | 21,796 |
3. INCOME TAX EXPENSE
| 2010 | 2009 | |
|---|---|---|
| $000 | $000 | |
| Profit before income tax | 26,812 | 16,067 |
| Tax at current rate of 30% | 8,044 | 4,820 |
| Future reduction in tax rate impacting deferred tax | (4,071) | - |
| Future change in buildings depreciation rules impacting deferred tax | 12 | - |
| Non taxable items: | ||
| Customer contributions | (629) | (84) |
| Prior year adjustments | 263 | (134) |
| Other | 698 | 346 |
| Income tax expense | 4,317 | 4,948 |
The income tax expense is represented by:
| 2010 | 2009 | |
|---|---|---|
| $000 | $000 | |
| Current income tax | 3,310 | 53 |
| Deferred income tax | 1,007 | 4,895 |
| Total | 4,317 | 4,948 |
The tax charge is notional, therefore no actual tax payments are made and as a result there are no imputation credits available to the gas distribution activities.
In May 2010 the Government announced a reduction in the company tax rate to 28% and the removal of depreciation deductions for buildings, effective from the 2011/2012 income year. In accordance with NZ IAS 12, the deferred tax liability has been restated to reflect these changes. The Government also announced that customer contributions would be taxable for those contributions received on or after 21 May 2010.
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NZ Gazette 2010, No 158
✨ LLM interpretation of page content
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Vector Limited Financial Statements for Gas Distribution Activities
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🏭 Trade, Customs & Industry15 November 2010
Financial Statements, Vector Limited, Gas Distribution, Accounting Policies, Impairment, Non-Financial Assets, Recoverable Amount, Depreciation, Amortisation, Profit Before Interest and Income Tax, Bad Debts, Rental and Operating Lease Costs, Directors’ Fees, Audit Fees, Personnel Expenses, Finance Costs, Interest Expense, Capitalised Interest, Income Tax Expense, Tax at Current Rate, Future Reduction in Tax Rate, Deferred Tax, Non-Taxable Items, Customer Contributions, Prior Year Adjustments, Current Income Tax, Deferred Income Tax, Tax Charge, Imputation Credits, Company Tax Rate, Depreciation Deductions for Buildings, NZ IAS 12