New Zealand Gazette – 1995 – No. 108

Page 3432

✨ Financial Statements Notes



3432 NEW ZEALAND GAZETTE No. 108

NOTES TO THE FINANCIAL STATEMENTS
Subscriptions Staff Numbers (F.T.E)
Telecommunications Staff Numbers (F.T.E)
Depreciation
Assets:
Cash
Inventory
Customer Deposits

1.5 Specific Accounting Policies

The following particular accounting policies which materially affect the measurement of profit and financial position are consistently applied:-

(a) Unlisted Companies

Eastland Energy Limited wholly owns the following companies: Eastland Network Limited, Remote Metering Limited, Eastland Power Limited. As these companies had not traded at 31 March 1995, there has been no consolidation.

(b) Revenue Recognition

Revenues for all services are recognised when earned. Billings for services are made on a monthly, bi-monthly or quarterly basis. Unbilled revenue from the billing cycle date to the end of the financial reporting period is recognised as revenue during the period in which the service is provided. Profit and interest on hire purchase sales are recognised in full at the time of sale.

(c) Fixed Assets

Fixed assets are valued at cost or valuation less accumulated depreciation.

The cost of fixed assets created or enhanced (self-constructed assets) is calculated as total direct costs incurred plus an appropriate proportion of indirect expenses. Freehold land and buildings are subsequently 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.

(d) Distinction between Capital and Revenue Expenditure

Capital expenditure is defined as all expenditure on the creation of a new asset and any expenditure which results in a significant improvement of the original function of a total asset. Revenue expenditure is defined as expenditure which restores an asset to its original condition, or renews distribution network lines without increasing capacity, and all expenditure incurred in maintaining and operating the assets.



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✨ LLM interpretation of page content

🏭 Notes to the Financial Statements for Eastland Energy Limited (continued from previous page)

🏭 Trade, Customs & Industry
Accounting Policies, Financial Statements, Eastland Energy Limited, Revenue Recognition, Fixed Assets, Capital Expenditure, Revenue Expenditure