✨ Financial Statements and Accounting Policies
2828 NEW ZEALAND GAZETTE No. 111
(b) 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.
(i) Receivables
Receivables are stated at their estimated realisable value after adequate provision for doubtful debts.
(j) Inventories and Work in Progress
Inventories are valued at the lower of weighted average cost or net realisable value.
Work in progress is valued at cost comprising direct labour, materials and a proportion of production overheads based on a normal level of activity.
(k) Foreign Currencies
There were no material foreign currency transactions during the period or outstanding foreign currency balances at balance date.
(l) Financial Instruments
Interest Rate Risk
The company has various financial instruments to reduce exposure to fluctuations in interest rates. Any resulting differential to be paid or received is accrued as interest rates change and is recognised as a component of operating revenue or expense.
Credit Risk
The company minimises its credit risk by limiting transactions to counterparties with high credit ratings and limiting the amount of funds placed with any parties at one time.
Collateral
The company does not require collateral or other security to support financial instruments with credit risk.
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VUW Te Waharoa —
NZ Gazette 1996, No 111
NZLII —
NZ Gazette 1996, No 111
✨ LLM interpretation of page content
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TrustPower Limited Statutory Declaration
(continued from previous page)
🏭 Trade, Customs & Industry9 September 1996
Electricity, Information Disclosure, Regulations, TrustPower, Financial Statements, Performance Measures
💰 Income Tax Accounting Policies
💰 Finance & RevenueIncome Tax, Financial Performance, Liability Method, Timing Differences
💰 Receivables Accounting Policy
💰 Finance & RevenueReceivables, Realisable Value, Doubtful Debts
💰 Inventories and Work in Progress Accounting Policy
💰 Finance & RevenueInventories, Work in Progress, Valuation, Cost
💰 Foreign Currencies Accounting Policy
💰 Finance & RevenueForeign Currency, Transactions, Balances
💰 Financial Instruments and Risk Management
💰 Finance & RevenueFinancial Instruments, Interest Rate Risk, Credit Risk, Collateral