✨ Financial Statements Notes
3530
NEW ZEALAND GAZETTE
No. 112
MERCURY ENERGY LIMITED AND SUBSIDIARIES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 1995 continued
- STATEMENT OF ACCOUNTING POLICIES (CONTINUED)
Specific Accounting Policies (Continued)
b) Recognition of Revenue
Income from electricity sales includes the value of units assessed as being recorded on meters as at 31 March 1995, but for which invoices had not been rendered.
c) Fixed Assets
The Group has the following classes of fixed assets:
Land
Buildings
Distribution System
Generation Plant and Buildings
Plant and Equipment
Fixed assets other than the Distribution System are recorded at cost less accumulated depreciation. The Distribution System has been revalued to its Optimised Deprival Value.
d) Depreciation
Depreciation is provided to allocate the assets' cost over their estimated useful lives as follows:
Buildings on Freehold Land - Straight Line basis over 25 years.
Leasehold Improvement - Over the term of the lease.
Generation - Straight Line Basis over 10 years.
Other Plant and Equipment - Diminishing Value method at 20% per annum.
Computer Hardware and - Straight Line basis over 3 years.
Software
e) Accounts Receivable
Receivables are valued at their estimated realisable value.
f) 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 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.
g) Stores
Stores are valued on the basis of weighted average cost price.
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VUW Te Waharoa —
NZ Gazette 1995, No 112
NZLII —
NZ Gazette 1995, No 112
✨ LLM interpretation of page content
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Notes to Financial Statements of Mercury Energy Limited and Subsidiaries
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial statements, Accounting policies, Electricity regulations, Consolidation