✨ Financial Statements and Accounting Policies
29 SEPTEMBER NEW ZEALAND GAZETTE 3415
BULLER ELECTRICITY LIMITED
STATEMENT OF ACCOUNTING POLICIES
1. MEASUREMENT BASE
The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on a historical cost basis are followed by the Company with the exception that certain Land and Buildings have been revalued.
The financial statements of Buller Electricity Limited have been prepared in accordance with the Electricity Information Disclosure Regulations 1994.
2. METHODOLOGY
The methodology used to determine line function services at March 31 1995 have been based on Electricity Disclosure Guidelines on business procedures issued by the Energy Policy Group Ministry of Commerce Wellington dated June 23 1994.
3. FIXED ASSETS
The Group has four classes of fixed assets:
- Land and Buildings
- Distribution System
- Plant Motor Vehicles, Tools and Equipment
- Office Furniture and Equipment (including Computers)
All fixed assets excluding Land and Buildings are shown at historical cost less accumulated depreciation.
Freehold land and buildings are revalued on a cyclical basis with no individual fixed asset being included at a valuation undertaken more than three years previously. Valuations are at net current value as determined by an independent valuer.
4. DEPRECIATION
Depreciation is provided on a straight line and diminishing value basis on all tangible fixed assets other than freehold land, at rates calculated to allocate the asset's cost or valuation less estimated residual value, over their estimated useful lives.
Major depreciation periods are:
| Distribution Equipment | 25-40 years (DV & SL) |
| Freehold Buildings | 50 years (SL) |
| Motor Vehicles | 5 years (DV) |
| Plant and Equipment | 10 to 20 years (DV) |
| Office Furniture and Equipment | 5 to 10 years (DV) |
Capital contributions towards the cost of reticulating new subdivisions and line extensions are recognised as revenue in the year received.
5. INCOME TAX
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 has been applied on a comprehensive basis to all timing differences. The debit balance in the deferred tax account, arising from timing differences are only recognised if there is virtual certainty of realisation.
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VUW Te Waharoa —
NZ Gazette 1995, No 108
NZLII —
NZ Gazette 1995, No 108
✨ LLM interpretation of page content
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Certification of Financial Statements and Performance Measures for Buller Electricity Limited
(continued from previous page)
🏭 Trade, Customs & Industry26 July 1995
Financial Statements, Performance Measures, Electricity, Buller Electricity Limited, Certification, Accounting Policies