✨ Financial Statements
NEW ZEALAND GAZETTE
No. 78
TAUPO ELECTRICITY LIMITED
Statement of Accounting Policies (cont)
Valuation of Assets
Land and Buildings
Land and Buildings are valued at the lesser of:
(a) estimated replacement value less allowance for wear and tear, or
(b) net realisable value as assessed, or
(c) cost less accumulated depreciation.
Fixed Assets
Fixed assets (other than land and buildings) are valued at the lesser of:
(a) net realisable value as assessed, or
(b) cost less accumulated depreciation.
Capital Contributions
Capital contributions made by customers have been disclosed separately. The contributions are amortised over the expected life of the asset to which the contribution relates. The amortisation rate is equal to the depreciation rate. The amount amortised for the financial year is included in net depreciation expensed to earnings.
Cost of Internally Manufactured Assets
Where assets are constructed by the company’s employees, the labour charge included in the cost of the asset is the applicable absorption labour cost for that employee. The absorption cost includes the direct labour cost, an allocation of indirect labour costs and overheads. The allocations are calculated using estimated productive hours for each department.
Accounts Receivable
Accounts Receivable are valued at estimated net realisable value. The valuation is after deducting a general provision for doubtful debts which may arise in subsequent periods, provision for which is made from earnings.
All known bad debts are written off against earnings in the period in which it becomes apparent that the debts are not collectable.
Inventories
Trading stock, raw materials and work in progress are valued at the lower of cost price, net realisable value or replacement cost. Cost price is determined on a weighted average basis. Cost price for items where there is internal preparation prior to use includes direct manufacturing costs and department overheads.
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VUW Te Waharoa —
NZ Gazette 1995, No 78
NZLII —
NZ Gazette 1995, No 78
✨ LLM interpretation of page content
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Statement of Accounting Policies for Taupo Electricity Limited
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Taupo Electricity Limited, Valuation of Assets, Land and Buildings, Fixed Assets, Capital Contributions, Cost of Internally Manufactured Assets, Accounts Receivable, Inventories