✨ Financial Statements Continuation
28 JUNE
NEW ZEALAND GAZETTE
2163
TELECOM WELLINGTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
1 STATEMENT OF ACCOUNTING POLICIES (CONTINUED)
When depreciable assets are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gains or losses on disposal are recognised in earnings.
Land and capital work in progress are not depreciated.
ACCOUNTS RECEIVABLE
Accounts receivable are recorded at expected realisable value after providing for bad and doubtful accounts.
INVENTORIES
Inventories are comprised principally of materials for self constructed network assets, critical maintenance spares and customer premises equipment held for rental or resale. They are stated at the lower of cost and net realisable value after due consideration for excess and obsolete items. Cost is determined on a first in first out basis.
INVESTMENTS
Short term investments consist of investments which mature or are otherwise realisable within not more than 12 months from the date of purchase and are stated at market value (where available), with the resulting gains or losses taken to earnings.
Non-current investments (and short term investments where no market value is available) are stated at the lower of cost or, where the directors consider that there has been a permanent diminution in value, at directors' valuation.
LEASES
The Company is lessor of customer premises equipment. Rental income applicable to operating leases, under which substantially all the benefits and risks of ownership remain with the lessor, are taken to revenue as earned.
Additionally the Company is lessee of certain plant, equipment, land and buildings under operating leases. Expenses relating to operating leases are charged against earnings as incurred.
No material finance leases have been entered into as lessor or lessee.
COMPENSATED ABSENCES
The liability for employees' compensation for future absences is accrued in respect of employees' services already rendered and where the obligation relates to rights which have vested. Such liability is reflected as personnel accruals within accrued personnel costs.
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VUW Te Waharoa —
NZ Gazette 1991, No 97
NZLII —
NZ Gazette 1991, No 97
✨ LLM interpretation of page content
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Telecom Wellington Limited Financial Statements
(continued from previous page)
🏭 Trade, Customs & Industry7 June 1991
Telecommunications, Financial Reporting, Accounting Policies, Fixed Assets, Depreciation, Accounts Receivable, Inventories, Investments, Leases, Compensated Absences