✨ Accounting Policies and Financial Statements
25 AUGUST NEW ZEALAND GAZETTE 2473
Expenditure
The expenditure shown in the Profit and Loss Account is derived as follows:
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Electricity purchases, operating costs, depreciation and the cost of electrical appliance goods sold are directly attributable to the Generation Business.
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Overheads relating to Corporate Services are allocated on the basis of the relative net asset values.
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Overheads relating to Engineering Services are allocated on the basis of the relative book values of the Energy Business’ fixed assets.
Taxation
The taxation charge against the profit for the year is the estimated liability in respect of that profit after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. The Company follows the liability method, partial basis, of accounting for deferred taxation.
Future tax benefits attributable to tax losses or timing differences are only recognised when there is virtual certainty of realisation.
The taxation charge has been allocated on the basis of the Energy Business’ contribution to the Company’s net profit before taxation.
Accounts Receivable
Accounts receivable are valued at net realisable value.
Accounts receivable shown in the Balance Sheet are those which are directly attributable to the Line Business.
Stock
Stock is valued at the lower of cost and net realisable value. In determining cost, weighted average cost has been used.
The stock shown in the Balance Sheet is that which is directly attributable to the Energy Business.
Other Current Assets
The other current assets shown in the Balance Sheet comprise cash and other current assets. These have been allocated on the basis of the relative working capital levels and an equal share basis respectively.
Current Liabilities
The current liabilities shown in the Balance Sheet include those which are directly attributable to the Energy Business and an allocation of Corporate Services and Engineering Services current liabilities. These have been allocated on an equal share to each activity basis and on the relative net book values of fixed assets respectively.
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VUW Te Waharoa —
NZ Gazette 1995, No 86
NZLII —
NZ Gazette 1995, No 86
✨ LLM interpretation of page content
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Central Electric Limited Accounting Policies
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Energy Business, Electricity, Expenditure, Taxation, Accounts Receivable, Stock, Current Assets, Current Liabilities