✨ Financial Statements Accounting Policies
706 NEW ZEALAND GAZETTE, No. 25 29 FEBRUARY 2012
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 more accurate information became available in relation to where employee benefit expenses are classified. In the previous year the full amount was reclassified from operating expenses. In the current period employee benefit expenses have been more accurately reclassified from both operating expenses and indirect expenses. As a result, in the comparative period, $1.35 million has been reclassified out of operating expenses with the corresponding increase to other expenses.
| Original Disclosure | Revised Disclosure | |
|---|---|---|
| NZ$000 | NZ$000 | |
| Operating expenses | 7,451 | 6,102 |
| Employee benefit expenses | 6,202 | 6,202 |
| Indirect expenses | 3,372 | 4,721 |
| Direct and indirect expenses | 17,025 | 17,025 |
Changes in accounting policies
Accounting policies have been consistently applied unless otherwise stated.
Standards, Amendments and Interpretations effective in the current period
The Standards and Interpretations listed below became mandatory in the current financial year. Management has reviewed these Standards and Interpretations and has determined there is no material effect on the results and position of the Group.
- Improvements to NZ IFRS (2009)
- Improvements to NZ IFRS (2010) – Improvements to NZ IFRS 3 and NZ IAS 27
All other standards, interpretations and amendments effective in the current period are not applicable to the Division and therefore have been excluded from the table above.
Standards, Amendments and Interpretations issued but not yet effective
At the date of authorisation of the Financial Statements, a number of Standards, Amendments and Interpretations were in issue but not yet effective.
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NZ Gazette 2012, No 25
✨ LLM interpretation of page content
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Basis of preparation for financial statements
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🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Borrowings, Liabilities, Trade Payables, Inter-division Account, Comparatives, Employee Benefits, Operating Expenses, Indirect Expenses