✨ Financial Accounting Policies
15 AUGUST NEW ZEALAND GAZETTE 2187
Unallocatable overheads are charged to the Contracting Business on a basis of staff numbers and asset value.
A share of the Company’s total subvention payment has been allocated to the Contracting Business based upon its proportion of the Company’s total contribution to profit.
(c) Dividend
Dividend has been calculated in accordance with the Company’s dividend policy adjusted for the subvention payment and allocated to the Contracting Business based upon its proportion of total company contribution to profits.
(d) Allocation of Assets and Liabilities
Assets and liabilities are those which are directly related to the Contracting Business.
(e) Current Assets
Accounts receivable are those directly related to the Contracting Business and are valued at expected realisable value less provision for doubtful debts.
(f) Fixed Assets
Furniture and fittings, vehicles, plant and equipment are valued at market value as at 31 December 1992 and have been adjusted by accumulated depreciation, subsequent additions at cost and disposals at book value.
(g) 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 to the original function of an existing asset.
Revenue expenditure is defined as expenditure which maintains an asset in working condition and expenditure incurred in maintaining and operating the Company.
(h) Depreciation
Fixed assets are depreciated on the basis of cost price less estimated residual value on a straight line basis over their estimated useful life. No assets are deemed to have an economic life in excess of 25 years.
Rates used are:
Furniture and fittings 10%
Plant and equipment 5 - 15%
Motor Vehicles 15%
(i) Taxation
The Company is subject to taxation under the Income Tax Act 1976.
Taxation is provided in the financial statements on the basis of the estimated taxation payable, after taking advantage of all available deductions and concessions.
(j) Goods and Services Tax
These accounts are prepared exclusive of GST except for accounts receivable and accounts payable which are GST inclusive.
13
Next Page →
PDF embedding disabled (Crown copyright)
View this page online at:
VUW Te Waharoa —
NZ Gazette 1995, No 80
NZLII —
NZ Gazette 1995, No 80
✨ LLM interpretation of page content
🏭
Dunedin Electricity Ltd Contracting Business Statement of Accounting Policies
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Contracting Business, Historical Cost, Accrual Accounting, Electricity Regulations, Hydro-electricity, Revenue, Expenditure, Dunedin Electricity Ltd