New Zealand Gazette – 1995 – No. 93

Page 2856

✨ Financial Statements Accounting Policies



2856 NEW ZEALAND GAZETTE No. 93

TAURANGA ELECTRICITY LIMITED

a) Revenue Recognition

Sales of electricity are determined on the basis of actual amounts billed to the customer during the year as determined by meter readings with an accrual for unbilled sales at year end.

b) Operating Lease Income

Income from an operating lease is recognised on a straight line basis over the term of the lease.

c) Depreciation

Depreciation is provided on a straight line or diminishing value basis on all tangible fixed assets other than freehold land, at rates calculated to allocate the assets’ cost or valuation less estimated residual value, over their estimated useful lives.

Major depreciation periods are:

  • Freehold buildings 40 years
  • Plant and equipment 5 to 15 years
  • Office furniture and equipment 5 to 10 years
  • Motor vehicles 4 to 5 years
  • Network assets 5 to 25 years
  • Under construction [Network] Nil

d) Leases

The company leases certain office furniture and equipment.
Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased items, are included in the determination of the operating profit in equal installments over the lease term.

e) Income Tax

The income tax expense charged to the statement of financial performance includes both the current year’s provision and the income tax effects of timing differences calculated using the liability method.

f) Fixed Assets

All fixed assets are recorded at cost.

g) Receivables

Receivables are stated at their estimated realisable value.

h) Inventories

Inventories are stated at the lower of weighted average cost, determined on a first-in first-out basis and net realisable value.
Cost of work in progress and finished goods includes the cost of direct material, direct labour and a proportion of the manufacturing overhead based on the normal capacity of the facilities, expended in putting the inventories in their present location and condition.

The accompanying Statement of Accounting Policies and Notes form part of and are to be read in conjunction with these Financial Statements. The Financial Statements have been prepared solely for the purpose of complying with Regulations 6(2) and 6(3) of the Electricity [Information Disclosure] Regulations 1994 and are not intended for any other purpose.



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✨ LLM interpretation of page content

🏭 Tauranga Electricity Limited 1995 Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
31 March 1995
Financial Statements, Accounting Policies, Revenue Recognition, Depreciation, Leases, Income Tax, Fixed Assets, Receivables, Inventories, Electricity, Tauranga