New Zealand Gazette – 1995 – No. 89

Page 2572

✨ Financial Accounting Policies



2572
NEW ZEALAND GAZETTE
No. 89

Electro Power Limited

Electricity Retailing Business

Statement Of Accounting Policies

Fixed assets are depreciated on the following basis:

i. Assets acquired since 31 December 1992:

Buildings                 2.0%    Straight Line
Computers               25%     Straight Line
Motor Vehicles          25%     Diminishing Value
Furniture & Fittings    15%     Straight Line

ii. Assets purchased from Palmerston North City Council:

Management have assessed the remaining useful lives of these assets
and they have been depreciated accordingly.

When depreciated assets are retired or otherwise disposed of, the related
cost and accumulated depreciation are removed from the respective
accounts and any gains or losses on disposal are recognised in the
Statement of Financial Performance.

(d) Investments

Investments are stated at cost.

(e) Accounts Receivable

Accounts receivable are recorded at expected realisable value after
adequate provision for doubtful debts.  Bad debts are written off in the
period they are identified.

(f) Taxation

The taxation expense charged against profit for the year includes both
current and deferred tax and is calculated after allowing for permanent
differences.

Deferred taxation is calculated using the liability method applied on a partial
basis.  Deferred taxation arises from amounts of income or expenditure
declared for taxation purposes in periods different from those in which they
are dealt with in the financial accounts.  By recognising these timing
differences, the taxation charged in the accounts is directly related to profits
reported.  Future taxation benefits attributable to timing differences carried
forward are recognised in the financial statements only where there is virtual
certainty that the benefit of the timing differences will be utilised by the
Company.

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✨ LLM interpretation of page content

🏭 Financial Statement Disclosure for Electro Power Limited (continued from previous page)

🏭 Trade, Customs & Industry
Electricity, Financial Statements, Information Disclosure, Accounting Policies