✨ Financial Statements
18 SEPTEMBER NEW ZEALAND GAZETTE
3265
(d) Fixed Assets
All fixed assets are initially recorded at cost.
Freehold land and buildings were subsequently revalued on 1 April 1991 to government valuation dated October 1990.
Distribution system assets have been valued in the accounts to reflect the present market value independently established by Landcorp Property Limited, registered valuers, using discounted cash flow techniques. The valuation report is dated 31 March 1993. All subsequent additions are at cost less depreciation.
Motor vehicles are valued at book values established in April 1987, plus additions at cost less depreciation.
Plant and equipment and computer equipment are valued at cost less depreciation.
No allowance for depreciation has been made on the cost of assets prior to 1 April 1976, the commencement of 1977 Accounting Regulations.
(e) Taxation
The income tax expense charged to the statement of financial performance includes both the current year’s provision and the income tax effects of timing differences calculated using the liability method.
Tax effect accounting is applied on a comprehensive basis to all timing differences.
A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.
(f) Receivables
Receivables are stated at their estimated realisable value. An estimate is made for doubtful debts based on a review of all outstanding amounts at year end. Bad debts are written off during the period in which they are identified.
(g) Inventories
Inventory has been stated at the lower of cost or net realisable value. Inventory has been valued on the basis of average cost during the year.
(h) Financial Instruments
Pursuant to FRS 31 the company estimates that in respect of the reported Financial Instruments, being cash, short term investments and debtors, fair value is equivalent to the carrying amount as stated in the statement of financial position.
The company holds cash in minimal quantities and places short term investments with only registered banks and limits the amount of credit exposure to any one registered bank. Concentrations of credit risk with respect to debtors are limited due to the large number of customers included in the company’s customer base.
(i) Changes in Accounting Policies
There have been no changes in the accounting policies. All policies have been applied on bases consistent with those used in the previous year.
Next Page →
PDF embedding disabled (Crown copyright)
View this page online at:
VUW Te Waharoa —
NZ Gazette 1995, No 101
NZLII —
NZ Gazette 1995, No 101
✨ LLM interpretation of page content
💰
Tasman Energy Limited Financial Statements
(continued from previous page)
💰 Finance & RevenueFixed Assets, Taxation, Receivables, Inventories, Financial Instruments, Accounting Policies