✨ Financial Statements Notes
13 SEPTEMBER
NEW ZEALAND GAZETTE
2951
Motor Vehicles
13.5% to 25%
Diminishing Value/
Straight Line
Globo Distribution System
4%
Straight Line
Distribution System Assets
5 to 10%
Diminishing Value/
Straight Line
110kV Transmission Line
4%
Straight Line
(iv) ACCOUNTS RECEIVABLE
Accounts Receivable are stated at estimated realisable value after providing against debts where collection is doubtful. All known bad debts have been written off during the year.
(v) INVENTORIES
Inventories are valued at weighted average cost price as landed in the store. Obsolete items of inventory have been written off.
(vi) VALUATION OF FIXED ASSETS
Land is valued at cost. Buildings have been revalued to market value as at 1 April 1992. The building valuations were determined by the registered valuers, Larmers of New Plymouth.
The distribution system has been revalued to its Optimised Deprival Value (ODV) as at 31 March 1996 by Coopers & Lybrand and this value is not in excess of the recoverable value. The system is revalued on a two yearly cycle.
The Patea dam and generation assets were revalued as at 31 March 1996 up to a value determined by the Southpac Corporation Limited of Wellington, using the net current value method. The Patea dam and generation asset is revalued annually.
All other Fixed Assets are shown at cost less accumulated depreciation calculated as stated in Policy (ii), above.
(vii) INCOME TAX
The provision for income tax is calculated using the liability method prepared on a partial basis. A debit balance in the deferred tax account arising from timing differences or income tax benefits arising from income tax losses is only recognised if there is virtual certainty of realisation.
(viii) FINANCIAL INSTRUMENTS
Egmont Electricity Limited is party to financial instrument arrangements as part of its everyday operations, including both instruments which have been recognised in these financial statements and those which are off-balance sheet.
The financial instruments which have been recognised in the financial statements include bank balances, short term deposits, receivables, payables and term loans. Revenues and expenses in relation to these are recognised in the Statement of Financial Performance. The financial instruments themselves are recognised in the Statement of Financial Position.
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VUW Te Waharoa —
NZ Gazette 1996, No 117
NZLII —
NZ Gazette 1996, No 117
✨ LLM interpretation of page content
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Notes to the Financial Statements for Egmont Electricity Limited
(continued from previous page)
🏭 Trade, Customs & Industry23 August 1996
Financial Statements, Accounting Policies, Revenue Recognition, Depreciation, Egmont Electricity Limited