✨ Financial Accounting Policy
4124 NEW ZEALAND GAZETTE, No. 165 3 DECEMBER 2010
The Division policy is to hedge the interest/foreign currency risk associated with term debt with financial instruments on matched terms.
Borrowings are classified as current liabilities (either advances and deposits or current portion of term debt) unless the Division has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
p) Trade and other payables
Trade payables and other accounts payable are recognised when the Division becomes obliged to make future payments resulting from the purchase of goods and services. These are initially recognised at fair value. Subsequent to initial recognition, trade payables and other accounts payable are recorded at amortised cost. Given the nature of these liabilities amortised cost approximates their notional principal.
q) Inter-division account
The inter-division account represents the balance due to other Divisions within Powerco Limited. The balance is the result of inter-divisional transactions since the Division was established.
r) Comparatives
During the year a review was performed of the method used to disclose the information in the Statement of Comprehensive Income. From this review it was decided that it is more informative to the readers of the gas disclosure accounts to disclose the information by nature rather than by function. As a result of this the amounts included with the 2009 Income Statement have been reclassified. There was also a change in the way the borrowings were disclosed in 2010, disclosing the interest owing against the loans rather than as a payable, to reflect the costs of the loans, in accordance with GAAP. The comparatives have been restated to reflect this change.
| Original Disclosure NZ$000 | Revised Disclosure NZ$000 | |
|---|---|---|
| Revenue | 47,149 | 47,146 |
| Other Income | - | 3 |
| 47,149 | 47,149 | |
| Operating expenses | ||
| Administration expenses | 7,143 | 7,143 |
| 9,330 | ||
| Employee benefit expenses | - | 5,059 |
| Other losses | 12,150 | 12,150 |
| Other expenses | 9,920 | 4,271 |
| Depreciation and amortisation | - | 9,920 |
| Finance costs | 19,275 | 19,275 |
| 57,818 | 57,818 |
Current liabilities
| Trade Payables | 4,235 | 2,833 |
| Borrowings | - | 101,016 |
| | 99,614 | |
| | 103,849 | 103,849 |
Non-current liabilities
| Borrowings | 161,747 | 161,747 |
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NZ Gazette 2010, No 165
✨ LLM interpretation of page content
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Impairment of Assets Policy
(continued from previous page)
🏭 Trade, Customs & IndustryImpairment, Recoverable amount, Fair value, Cash flows, Carrying amount, Intangible assets, Amortisation, Leases, Property, plant and equipment, Depreciation, Revenue recognition, Contributed capital, Taxation, Term debt