New Zealand Gazette – 1995 – No. 84

Page 2391

✨ Accounting Policies Disclosure



22 AUGUST NEW ZEALAND GAZETTE 2391

(c) Buildings, Plant and Equipment are recorded at historic cost less accumulated depreciation.

(d) Land and Roading is recorded at historic cost.

(e) Motor Vehicles are recorded at historic cost less accumulated depreciation.

All assets, except freehold land and roads are depreciated over their estimated useful lives on a straight line basis or diminishing value basis as considered appropriate, commencing from the time the asset is held ready for use.

The economic life ranges for the various classes of assets are:-

(a) Hydro Assets

Dams - Headworks            50 to 99 years
Powerhouse and Associated Buildings 50 to 53 years
General Plant and Substations       26 years
Equipment and Tools         5 to 10 years

(b) Other Assets

Buildings and Residences        39 to 48 years
Distribution Equipment      16 to 25 years
Tools, Plant Equipment      5 years
Trading Buildings       39 years
Motor Vehicles          5 years
  1. Taxation

The Taxation charge against the result for the year is the estimated liability in respect of that result after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. The Company follows the liability method of accounting for deferred taxation. Deferred taxation benefits are only recognised when there is virtual certainty of recovery in future periods.

  1. G.S.T.

These accounts are prepared exclusive of GST except for Accounts Receivable and Accounts Payable which are inclusive of GST.

  1. ASSET ALLOCATION

Under the Electricity (Information Disclosure) Regulations 1994 Otago Power Limited is defined as a line business, a Generation business and an Energy business.

The methodology for allocating costs, revenues, assets and liabilities between the businesses is on the same basis as outlined in the Electricity Disclosure Guidelines as issued by the Ministry of Commerce on 23rd June 1994.

CHANGES IN ACCOUNTING POLICIES

There have been no changes in accounting policies this period.



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✨ LLM interpretation of page content

🏭 Disclosures under Electricity (Information Disclosure) Regulations by Otago Power Limited (continued from previous page)

🏭 Trade, Customs & Industry
Accounting Policies, Asset Valuation, Depreciation, Taxation, GST, Asset Allocation, Electricity Regulations