Earlier this week Netprophet reported on how results in the current reporting round for listed companies have been distorted by more than $1 billion. (Story here)

In this article we link to examples of how deferred tax works. This document has been prepared by Rob Challinor.

Also below we have a table showing the deferred tax “liabilities” for NZX-listed companies. These liabilities come about as a result of the application of International Financial Reporting Standards to withdrawal of tax depreciation on buildings which the government announced in this year's Budget.

Company Deferred Tax Adjustment ($millions) AMP Office Trust 93 Auckland Airport 89 Briscoe Group 3 Cavalier 4 Contact Energy 34 Fisher & Paykel Healthcare 11 Fletcher Building 30 Freightways 6 Goodman Fielder 16 Goodman Property Trust 130 ING Medical Properties Trust 15 ING Property Trust 96 Kiwi Income Property Trust 132 Metlifecare 45 M & C Hotels 26 OneSteel 4 Port of Tauranga 10 Ports of Auckland 4 Property for Industry 36 Queenstown Airport 6 Skellerup Holdings 11 Sky City 40 Steel and Tube 4 Telecom 30 Vector 21 The Warehouse Group 23 Total

$919 million

 

The figures above are the reported or estimated additional ‘”liability” at 19 August 2010. No responsibility for the accuracy of these numbers is accepted. If individually quoted, a direct check should be made with the relevant company website.

The Labour Party is opposing a batch of last minute add-ons to the already large Taxation (International Taxation, Life Insurance and Remedial Matters) Bill.

We are shortly about to see a very significant discussion document released in New Zealand regarding financial statements.  The Ministry of Economic Development (MED), the government ministry responsible for our financial reporting legislation, is due to release a number of important discussion documents at the end of July.  One of these will consider options for which entities in future will be required by law to prepare and file financial statements in New Zealand.

Officials expect to release a discussion document on IFRS reporting standards for Small and Medium-sized Entities sometime in August - and not a moment too soon, say some accountants.