✨ Financial Accounting Policies
17 SEPTEMBER
NEW ZEALAND GAZETTE
3041
e) Fixed Assets
Fixed assets are initially recorded at cost less accumulated depreciation excluding land which is not depreciated.
Freehold land & Buildings are subsequently revalued on a cyclical basis with no individual fixed asset being included at a valuation undertaken more than three years previously. Valuations are at net current value.
f) Investments and Cash
Investments are valued at cost. Cash is defined as the day to day cash management funds including short term deposits.
g) Depreciation
Depreciation of fixed assets, other than freehold land, is calculated on a straight line basis so as to allocate the cost of the assets, or the revalued amounts less their residual value, over their useful lives.
Major depreciation periods are:
Buildings - 50 years
Computer Equipment - 3 to 5 years
Distribution System - 33 to 35 years
Motor Vehicles - 7 to 10 years
Plant and Equipment - 10 years
h) Taxation
The income tax expense charged against the profit for the year is the estimated liability in respect of that profit and is calculated after allowance for permanent differences. The company uses the liability method of accounting for deferred taxation and applies this on a comprehensive basis. Future tax benefits attributable to tax losses or timing differences are only recognised when there is virtual certainty of realisation.
i) Employee Entitlements
These have been valued as the actual liabilities of SCANPOWER as at 31 March 1996. This includes the estimated liability for annual leave and long service leave as a result of services rendered by employees up to balance date.
j) Financial Instruments
The company places its cash deposits with high-credit quality financial institutions.
The company does not normally require deposits from customers except for, those who have been disconnected. No other form of security or collateral is required to support financial instruments with credit risk.
Changes in Accounting Policies
There have been no changes in Accounting Policies. All policies have been applied on bases consistent with previous years.
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VUW Te Waharoa —
NZ Gazette 1996, No 121
NZLII —
NZ Gazette 1996, No 121
✨ LLM interpretation of page content
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Financial Performance Measures for Scanpower Limited
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Fixed Assets, Investments, Depreciation, Taxation, Employee Entitlements, Financial Instruments