New Zealand Gazette – 1996 – No. 108

Page 2787

✨ Financial Statements and Accounting Policies



6 SEPTEMBER NEW ZEALAND GAZETTE 2787

(b) Distribution system assets, except standby transformers, are valued at cost less accumulated depreciation. Standby transformers are recorded at a current market value established in 1991, as valued by B. Wilkes an independent valuer, less depreciation. This is a departure from the historical cost measurement base.

(c) Buildings, Plant and Equipment are recorded at historic cost less accumulated depreciation.

(d) Land and Roading is recorded at historic cost.

(e) Motor Vehicles are recorded at historic cost less accumulated depreciation.

All assets, except freehold land and roads are depreciated over their estimated useful lives on a straight line basis or diminishing value basis as considered appropriate, commencing from the time the asset is held ready for use.

The Economic life ranges for the various classes of assets are:-

(a) Hydro Assets

Dams - Headworks                         50 to 99 years
Powerhouse and Associated Buildings      50 to 53 years
General Plant and Substations            26 years
Equipment and Tools                    5 to 10 years

(b) Other Assets

Buildings and Residences               39 to 48 years
Distribution Equipment                 16 to 25 years
Tools, Plant Equipment                 5 years
Trading Buildings                      39 years
Motor Vehicles                         5 years
  1. Taxation

The Taxation charge against the result for the year is the estimated liability in respect of that result after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. The Company follows the liability method of accounting for deferred taxation. Deferred taxation benefits are only recognised when there is virtual certainty of recovery in future periods.

  1. G.S.T.

These accounts are prepared exclusive of GST except for Accounts Receivable and Accounts Payable which are inclusive of GST.



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✨ LLM interpretation of page content

🏭 Otago Power Limited Information Disclosure (continued from previous page)

🏭 Trade, Customs & Industry
Electricity, Information Disclosure, Otago Power Limited, Accounting Policies, Financial Statements
  • B. Wilkes, Independent valuer for standby transformers