New Zealand Gazette – 1995 – No. 101

Page 3169

✨ Financial Statements



18 SEPTEMBER NEW ZEALAND GAZETTE 3169

c) Fixed Assets

CentralPower has six classes of fixed assets:

  • Network lines
  • Network equipment
  • Freehold land
  • Freehold buildings
  • Plant and equipment
  • Motor vehicles

All fixed assets are initially recorded at cost. Land and buildings are subsequently revalued to net current value or where the land and buildings are for resale, to the lower of cost and net realisable value as determined by an independent valuer.

Self constructed assets are assets constructed by CentralPower for its own use. They are primarily network lines.

Reconstructed lines have been capitalised to fixed assets. The cost of self constructed assets includes the direct costs of construction for materials and labour and an allocation of the production overheads which relate to bringing the asset to the location and condition necessary for its intended service.

d) Depreciation

Depreciation is provided on a straight line basis on all fixed assets other than freehold land, at rates calculated to allocate the assets' cost or valuation less estimated residual value, over their estimated useful lives.

Major useful lives are:

  • Network lines 35 to 45 years
  • Network equipment 35 to 45 years
  • Freehold buildings 25 to 50 years
  • Plant and equipment 3 to 15 years
  • Motor vehicles 3 to 10 years

e) Receivables

Trade, non-trade and hire purchase receivables are stated at their net estimated realisable value. The valuation is net of a general provision maintained for doubtful debts which could be expected to arise in subsequent accounting periods, provision for which is made from operating surplus. All known losses are charged to the Statement of Financial Performance in the period in which it becomes apparent that the debts are not collectible.

Hire Purchase receivables include unearned interest. Total interest is included at the time the contract is signed and is allocated over the term of the contract using the 'Rule of 78' method.



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🏭 Financial Statements for CentralPower Limited (continued from previous page)

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Financial Statements, Fixed Assets, Depreciation, Receivables, Accounting Policies, CentralPower Limited