✨ Financial Statements
2828 NEW ZEALAND GAZETTE No. 93
Investments.
Investments are valued at the lower of cost and net realisable value.
Income Tax.
The income tax expense charged for the period is the estimated liability calculated after allowance for permanent and timing differences.
The company uses the liability method of accounting for deferred taxation and applies this on a partial basis. Future tax benefits attributable to tax losses or timing differences are not recognised, except where there is virtual certainty of their realisation.
Depreciation of Fixed Assets.
Depreciation rates for major classes of asset are:
| Land | Not Depreciated |
| Buildings | 1% SL |
| Furniture and Fittings | 10% to 20% DV |
| Office Equipment | 10% to 20% DV |
| Motor Vehicles | 20% DV |
| Network Systems and Generation| 2% SL |
Revenue Recognition.
Revenue from the sale of energy and value added services is recognised when invoices are issued plus an accrual is made for unread meters.
Generation Income.
The cost of generation charged against cost of sales is valued at avoided purchase cost of units produced, based on Electricity Corporation of New Zealand Limited prices.
Goodwill.
Goodwill represents the excess of purchase consideration over the fair value of net assets acquired at the time of acquisition of a business or shares in a subsidiary or an associate company.
Goodwill is amortised on a systematic basis over the period benefits are expected to arise which will generally be five years; however in individual cases may be up to twenty years.
Notes to and forming part of the Financial Statements for the year ended 31 March 1995
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VUW Te Waharoa —
NZ Gazette 1995, No 93
NZLII —
NZ Gazette 1995, No 93
✨ LLM interpretation of page content
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Taranaki Energy Limited Statement of Financial Performance
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Investments, Income Tax, Depreciation, Revenue Recognition, Goodwill