✨ Financial Statements and Accounting Policies
NEW ZEALAND GAZETTE
No. 125
(g) Fixed assets
All fixed assets are initially recorded at cost.
Southpower’s fixed assets were acquired from the Southpower Joint Venture based on independent valuations performed for the Joint Venture as at 31 March 1993.
The Company’s distribution system is revalued on a cyclic basis at least once every three years to net current value, using discounted cash flows, which are not in excess of recoverable value.
Land and buildings are revalued on a systematic basis to their net current market value at least once every three years.
(h) Income tax
The income tax expense charged to the Profit and Loss Statement includes both the current year expense and the income tax effects of timing differences calculated using the liability method.
Tax effect accounting is applied on a partial 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.
(i) Internal sales
Due to the separation of the other electricity businesses from the line business, internal sales have been reported as actual sales and purchases, instead of being eliminated.
Changes in Accounting Policies
There have been no changes in accounting policies.
Notes to the Accounts
Both the Statement of Financial Performance and Statement of Financial Position are reconcilable to Southpower’s published Annual Report after adjusting for the revenues, costs, assets and liabilities attributable to the business units that are not covered by the disclosure requirements of these Regulations.
1995 comparative information for both the line business and electricity - related businesses (as defined by Regulation 6(3)) has been restated since 1995’s public disclosure.
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VUW Te Waharoa —
NZ Gazette 1996, No 125
NZLII —
NZ Gazette 1996, No 125
✨ LLM interpretation of page content
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Southpower Limited Financial Statements
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🏭 Trade, Customs & IndustryFinancial Statements, Fixed Assets, Income Tax, Internal Sales, Accounting Policies