✨ Financial Statements Notes
18 AUGUST NEW ZEALAND GAZETTE 2279
(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 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 the service performance and operation of the Company.
(e) Depreciation
In accordance with Sec 14.(5)(b) of the Electricity (Information Disclosure) Regulations 1994, no depreciation has been written off fixed assets, these having been accounted for on a Renewal Accounting basis.
(f) Receivables:
Receivables are stated at their estimated realisable value.
(g) Income Tax:
The income tax expense charged against the profit for the year is the estimated liability calculated at 33 cents in the dollar in respect of that profit.
(h) Work in Progress:
The cost of work in progress includes the cost of direct material and direct labour used in putting replacement and new systems in their present location and condition.
(i) Goods and Services Tax
These Accounts have been prepared on a GST exclusive basis with the exception of Sundry Debtors and Creditors which are GST inclusive.
CHANGES IN ACCOUNTING POLICIES
These Accounts are prepared using Renewal Accounting methodology and are for the sole purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1994. As a consequence these accounts are not comparable with the Company’s published financial accounts.
Being the first year for reporting under the Electricity (Information Disclosure) Regulations 1994, there are no comparative figures.
NOTE 2. TAXATION 1995
Net Profit before taxation $ 3,377,640
Prima facie tax at 33% $ 1,114,621
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VUW Te Waharoa —
NZ Gazette 1995, No 82
NZLII —
NZ Gazette 1995, No 82
✨ LLM interpretation of page content
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Notes to and Forming Part of the Line Business Financial Statements
(continued from previous page)
💰 Finance & Revenue4 August 1995
Financial Statements, Accounting Policies, Capital Expenditure, Revenue Expenditure, Depreciation, Receivables, Income Tax, Work in Progress, Goods and Services Tax