Annual Report 2011 - Watercare

More documents

Recommendations

Info

Watercare Services Limited 2011 ANNUAL REPORT Notes to the financial statements (continued) for the year ended 30 June 2011 8. Income Tax Expense group and Company Company 2011 2010 $000 $000 Operating deficit before tax (7,895) (16,398) Income tax calculated at current rate of 30% (2,368) (4,919) Dividend income exempt from taxation (2) - Non-deductible expenses 377 255 Imputation credits on dividends received (14) (21) Prior year and other adjustments (551) 736 Tax effect of non-deductible items and prior period adjustments (190) 970 Tax depreciation on buildings acquired on integration being non-deductible from 1 July 2011 6,064 - Tax depreciation on buildings being non-deductible from 1 July 2011 - 14,037 Deferred tax as a result of reducing the corporate tax rate from 30% to 28% from 1 July 2011 932 1,223 Tax effect of non-recurring items 6,996 15,260 Income tax expense 4,438 11,311 Represented by: Deferred tax 4,438 11,311 Income tax expense 4,438 11,311 Imputation credits Balance at beginning of year 30,082 30,061 Imputation credits attached to dividends received 14 21 Total imputation credits 30,096 30,082 The imputation credit account is a memorandum account and does not form part of the statement of financial position. 2011 Financial Report PAGE 84 Return to Contents page
Watercare Services Limited 2011 ANNUAL REPORT Notes to the financial statements (continued) for the year ended 30 June 2011 9. Deferred Tax Liability group and Company Company 2011 2010 $000 $000 Balance at I July 2010 402,049 420,666 Deferred tax arising on integration recorded in capital reserve 301,613 - Deferred tax recognised in other comprehensive income – resulting from the revaluation of property, plant and equipment 140,728 (167) Deferred tax recognised in other comprehensive income, resulting from transfer to retained earnings relating to disposal of property, plant and equipment 1,520 394 Deferred tax recognised in other comprehensive income, resulting from transfer from revaluation reserve relating to disposal of property, plant and equipment (1,520) (394) Deferred tax recognised in the deficit for the year (2,558) (3,949) Tax depreciation on buildings acquired on integration being non-deductible from 1 July 2011 6,064 - Tax depreciation on buildings being non-deductible from 1 July 2011 recognised in the deficit for the year - 14,037 Deferred tax on property, plant and equipment due to asset revaluation as a result of the reduction of the corporate tax rate from 30% to 28% from 1 July 2011 recognised in other comprehensive income - (29,761) Deferred tax on tax losses and property, plant and equipment as a result of the reduction of the corporate tax rate from 30% to 28% from 1 July 2011 recognised in the deficit for the year 932 1,223 Balance at 30 June 2011 848,828 402,049 The balance relates to: Depreciation temporary differences 967,457 423,395 Provisions and accrued expenses temporary differences (15,652) (12,405) Tax losses (102,977) (8,941) Total deferred tax liability 848,828 402,049 The group’s subsidiary, Metrowater Community Trust, is exempt from tax, and the group’s other subsidiary Auckland City Water Limited is a non-trading company. The depreciation temporary differences for property, plant and equipment arise because the carrying value of property, plant and equipment is higher for accounting purposes than for taxation purposes, for example due to: • The revaluation of certain assets; and • The group’s depreciation rates being lower than those permitted by tax legislation. The provisions and accrued expenses temporary differences principally relate to the mark-to-market revaluation of financial instruments. These expenses have been recognised for accounting purposes but cannot be deducted for tax purposes until the amounts become payable. Under Section 83 of the Local Government (Auckland Transitional Provisions) Act 2010 the company integrated the closing tax position of Metrowater Limited and Manukau Water Limited. Additionally, the closing accounting book value for all assets inherited from the Councils was legislated to be the opening tax book value of the company at 1 November 2010. 10. Issued Capital The total number of authorised and issued shares is 260,693,164 (2010: 260,693,164) ordinary shares of $1 each. All ordinary issued shares are fully paid and carry equal voting rights to: • one vote on a poll at a meeting of the company on any resolution; and • an equal share in the distribution of the surplus assets of the company. Under Section 57(1)(b) of the Local Government (Auckland Council) Act 2009 the company must not pay any dividend or distribute any surplus in any way, directly or indirectly to its shareholder. The capital management policy of the group is detailed in note 21, page 102. PAGE 85 2011 Financial Report Return to Contents page
Page 1 and 2:
Annual Report 2011 ANNUAL REPORT 20
Page 3 and 4:
Watercare Services Limited 2011 ANN
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36: Watercare Services Limited 2011 ANN
Page 61 and 62: financial report 2011 Fletcher Cons
Page 85: Watercare Services Limited 2011 ANN
show all

Annual Report 2011 - Watercare

Create successful ePaper yourself

Delete template?

Save as template?