Page 40 - NZPM Annual Report 2017

NZPM GROUP ANNUAL REPORT 2017

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the year ended 31 March 2017

recognised in the statement of financial position the obligation, and the provision can be reliably
and the amount of the other tax losses and measured.
temporary differences not yet recognised. In such
circumstances, some or all of the carrying Employee entitlements
amounts of recognised deferred tax assets and
liabilities may require adjustment, resulting in a Liabilities in respect of employee entitlements are
corresponding credit or charge to the statement recognised in exchange for services rendered
of financial performance. during the accounting period, but which have
not yet been compensated as at reporting date.
These include annual leave, long service leave,
Income tax retirement leave and accrued compensation.
Current tax assets and liabilities are measured
at the amount expected to be recovered from or Contingent liabilities
paid to the relevant taxation authorities based Judgements and estimates are applied to
on the current period’s taxable income and any determining the probability that an outflow of
adjustments in respect of previous years.
resources will be required to settle an obligation.
These are made based on a review of the facts
Deferred tax and circumstances surrounding the event and
Deferred income taxation is recognised in respect advice from both external and internal parties.
of temporary differences arising between the tax Liabilities shown are for those in existence as at
bases of assets and liabilities and their carrying reporting date but not provided for in the
amounts in the financial statements. financial statements.

Deferred income tax assets and unused tax Co-operative share capital
losses are only recognised to the extent that it Ordinary shares, development shares and
is probable that future taxable amounts will be redeemable preference shares (RPS) are
available against which to utilise those temporary classified as co-operative share capital.
differences and losses.
When shares are acquired, the amount of the
consideration paid is recognised directly as a
Borrowings liability. Shares are accounted for as a liability
Interest bearing borrowings are initially recognised because under the Co-operative Companies Act
at fair value on transaction date, net of 1996, under certain conditions specified in the Act,
transaction costs incurred. They are subsequently shareholders have the right to surrender shares in
stated at amortised cost using the effective the Group and receive payment.
interest rate method, where appropriate.
Dividends on RPS and rebate shares and rebate
Trade and other payables dividends on ordinary shares are recognised as a
liability in the period in which they are approved
Trade creditors and other liabilities are stated at and declared by the board of directors.
cost or estimated liability where accrued.

Other liabilities INCOME DETERMINATION
Provisions Revenue recognition
A provision is recognised when the Group has a Revenue is recognised to the extent that it is
present legal or constructive obligation as a result probable that the economic benefits will flow
of a past event, it is probable that an outflow

of economic benefits will be required to settle

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