✨ Financial Accounting Policies
4 SEPTEMBER
NEW ZEALAND GAZETTE
2871
e) Capital Contributions
Capital contributions are recognised as income when received.
f) Depreciation
Depreciation on non infrastructure assets has been charged at rates in accordance with those prescribed by the Inland Revenue Department for tax deduction purposes.
Depreciation on Assets purchased during the year has been charged on a monthly basis from month of purchase.
Buildings 1 - 4% SL
Motor Vehicles 20 - 25% DV
Plant, Furniture and Equipment 10 - 25% DV
g) Receivables
Receivables are stated at their estimated realisable value after adequate provision for doubtful debts. Bad debts are written off in the period they are identified.
h) Income Tax
The income tax expense charged to the profit and loss statement includes both the current year expense and the income tax effects of timing differences calculated using the liability method.
Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.
i) Inventories
Inventories are stated at the lower of weighted average cost 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 expended in putting the inventories in their present location and condition.
j) Financial Instruments
The Company includes all financial instrument arrangements in the statement of financial position using the concepts of accrual accounting. These instruments arise as a result of everyday operations and include: cash, debtors, creditors, investments and term liabilities. Revenues and expenses in relation to all financial instruments are recognised in the statement of financial performance. Financial instruments are shown at their fair values.
k) Methodology of Separation of Businesses
Waipa Power Limited has generally followed the Electricity Disclosure Guidelines as issued by the Ministry of Commerce dated 23 June 1994 with the exceptions available on request in accordance with Regulation 19.
CHANGES IN ACCOUNTING POLICIES
There have been no changes in accounting policies. All policies have been consistently applied during the year.
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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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Financial Performance Statement for Waipa Power Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Capital Contributions, Depreciation, Receivables, Income Tax, Inventories, Financial Instruments, Electricity Regulations