New Zealand Gazette – 1995 – No. 97

Page 3031

✨ Financial Statements Notes



NEW ZEALAND GAZETTE

8 SEPTEMBER

3031

Wairoa Power Limited - Other Businesses

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 1995 continued

Specific Accounting Policies

The following specific accounting policies which materially affect the measurement of financial performance and financial position have been applied.

a) Fixed Assets

The Company has five classes of fixed assets:

  • Freehold Land
  • Freehold Buildings
  • Hydro Dam
  • Generation Equipment
  • Other Plant & Equipment

All fixed assets are recorded at cost.

b) Depreciation

Depreciation is provided on a straight line basis on all tangible assets other than freehold land, (except for motor vehicles, plant and equipment), at rates calculated to allocate the assets' cost or valuation less estimated residual value over their estimated useful lives. Motor vehicles, plant and equipment are depreciated on a diminishing basis over their expected economic lives.

Major depreciation periods are:

  • Freehold Buildings: 50 years
  • Hydro Dam: 100 years
  • Generation equipment: 25 years
  • Other Plant & Equipment: 8-10 years

d) Receivables

Receivables are stated at estimated realisable value after providing against debts where collection is doubtful.

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.

Tax effect accounting has been 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.



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✨ LLM interpretation of page content

🏭 Annual General Meeting of Wairoa Power Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Accounting Policies, Wairoa Power Limited, Fixed Assets, Depreciation, Receivables, Income Tax