Page 65

S E C T I O N 1 2 : Our Financial Review

ALLIANCE ANNUAL REP ORT 2018

MEASUREMENT & RECOGNITION Interest income is recognised as it accrues. Finance expenses comprise interest expense on borrowings. A3

PERSONNEL EXPENSES GROUP

Wages and salaries Contributions to KiwiSaver plans Increase in liability for long service leave Total personnel expenses

2018

2017

$000 235,148 7,500 195

$000 214,552 7,747 104

242,843

222,403

MEASUREMENT & RECOGNITION Provision is made for benefits owing to employees in respect of services rendered. Provisions are recognised when it is probable they will be settled and can be measured reliably. A4

TA X ATION GROUP 2018

2017

$000

$000

Recognised in the income statement Current tax expense Current income tax expense Adjustments for prior years Unutilised prior year tax credits Deferred tax expense

2,327 1,254 736 (589)

Total income tax expense in income statement

3,728

2,321

10,330

16,747

Income tax expense calculation Net profit before tax for the year Income tax using the company’s tax rate (28%)

2,892

Non assessable income

(528)

Tax effect of post-tax equity accounted earnings Tax effect of lower tax for overseas subsidiary

779 154 839 549

4,689 (2,056)

59

156

(204)

(372)

Under / (over) provided in prior years

1,509

Income tax expense

3,728

(96) 2,321

MEASUREMENT & RECOGNITION Income tax expense is the income tax assessed on taxable profit for the year. Taxable profit differs from profit before tax reported in the income statement as it excludes items of income and expense that are taxable or deductible in future years (i.e. deferred tax) and also excludes items that will never be taxable or deductible. Income tax expense components are current income tax and deferred tax. IMPUTATION CREDIT S As at balance date imputation credits available for use in subsequent periods totalled $34.5 million (2017: $34.5 million)

61

Profile for alliance12

Annual Report 2018  

Annual Report 2018