✨ Financial Statements Disclosure
18 AUGUST
NEW ZEALAND GAZETTE
2313
(v) Inventories
Stocks and work-in-progress are stated at the lower of cost and net realisable value.
The cost of stocks is principally determined on a weighted average basis.
The cost of work-in-progress includes materials, and a portion of direct labour and production overhead appropriate to the stage of completion attained.
(vi) Debtors
Debtors are stated at estimated realisable value after providing against debts where collection is doubtful.
(vii) Taxation
The taxation charge against the profit for the year is the estimated liability in respect of that profit after allowance for permanent differences. This is the comprehensive basis for the calculation of deferred taxation.
The Company follows the liability method of accounting for deferred taxation.
Future taxation benefits attributable to losses carried forward, or timing differences, are recognised in the financial statements only where there is virtual certainty of realisation.
(viii) Research and Development Costs
Research and development costs are expensed in the period incurred. Development costs are deferred where future benefits are expected to exceed these costs. Deferred development costs are amortised over future periods on a basis related to expected future revenue.
(ix) Financial Instruments - Credit Risk
Northpower has a potential concentration of credit risk in relation to the small number of customers who represent a significant portion of trading activity.
Northpower has limited its exposure to credit risk in respect of its investments by only investing in institutions with a high credit rating, and limiting the amount that can be invested in any one institution. Northpower believes this policy reduces the risk of any loss which could arise from its investing activities.
(x) GST
These Statements of Account are prepared on a GST exclusive basis.
Changes in Accounting Policies:
There have been no changes in accounting policies.
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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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Disclosure of Financial Statements for Northpower Limited
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