Forum Archive Index - April 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

It's been a while, but I hate to see queries go unanswered on 
'Sharechat'.  

On Fri, 05 Oct 2001, Silverfox wrote:

>A query for the accounting-aware out there:
>
>
>
>I am still getting to grips with some aspects of NZ
>financial reporting, and am struggling to reconcile SKC's
>Statement of Financial Performance (Profit and Loss
>statement). In particular, the expenses of $335 million
>refer to note 2, which in turn lists operating expenses
>that are 'included within total expenses'. The list is
>obviously not complete as they add up to only $214m. Is
>the missing $121m found elsewhere in the report, or is
>that the extent to which NZ entities need to report their
>costs?
>
>
>
--------------

"The Statement of Financial Performance (Profit & Loss) on
page 37 is a summary of our operating performance(profit)
and includes all expenses incurred by the Group during
the year."

"You are correct in your understanding that expenses in
Note 3 on page 47 are a component of the $335m on page
37. The expenses disclosed in Note 3 are certain expenses
that we are required to disclose separately by Financial
Reporting Standards in New Zealand as they are considered
of special interest to the reader of the accounts (e.g.
Audit fees). It is not intended to be a comprehensive
list of all expenses."

"The expenses that make up the $121m balance are many and
varied including items such as foodstuffs and alcohol for
the restaurants and bars, advertising, stationery, power,
telephones, and rates."

"I hope this satisfactorily explains the difference."

Regards,
Bruce Macdonald
Manager Corporate Services

----------


I don't know whether that answer will satisfy Silverfox.  But it 
seems that the New Zealand Financial reporting standards do not 
require NZ Companies to declare all explicitly declare all expenses.

Perhaps on the grounds of commercial sensitivity?  Does anyone out 
there have a better explanation? SNOOPY




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