✨ Financial Statements Accounting Policies
NEW ZEALAND GAZETTE
No. 112
WEL ENERGY GROUP LIMITED
ENERGY BUSINESS
(d) Fixed Assets
Land and buildings are revalued by independent valuers every three years on the basis of open market value for existing use. All other fixed assets are recorded at cost less accumulated depreciation.
(e) Depreciation of Fixed Assets
Depreciation of fixed assets is provided for as follows:
| Rate | Method | |
|---|---|---|
| Buildings | 3% | Straight Line |
| Furniture | 20 - 25% | Diminishing Value |
| Plant and Equipment | 20 - 25% | Diminishing Value |
| Vehicles | 20 - 25% | Diminishing Value |
(f) Principles of Energy Business Split
The energy business forms a segment of the operations of WEL Energy Group Limited. The allocation of costs, revenue, assets and liabilities was carried out on a basis which reflects the items attributable to each segment of the Group.
Where possible, financial statement items were allocated directly to the energy business. In those instances where direct allocation was not possible, the following allocation methodologies were employed:
Corporate Overheads
Corporate overhead costs were allocated as follows:
Personnel and payroll costs based on staff numbers; accounting costs were based on complexity (primarily the number of transactions generated); Directors fees and consultancy based on an estimate of time spent on each segment. All other overheads were allocated in proportion to the allocation of other previously allocated overheads.
Property Costs
Allocated using market based rentals.
Expenditure
Where a segment of the company performs energy business activities in addition to other functions each item of expenditure incurred by that segment has been allocated to the energy business in proportion to the total level of energy business activity undertaken by the segment.
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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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Statement of Accounting Policies for WEL Energy Group Limited
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Fixed Assets, Depreciation, Energy Business, WEL Energy Group Limited