✨ Financial Guidelines
29 NOVEMBER NEW ZEALAND GAZETTE 4533
Guideline for Depreciation
10 ECNZ will comply with the recognised accounting standards dealing with depreciation, currently SSAP 3, Accounting for Depreciation, and SSAP 28, Accounting for Fixed Assets.
Financial Guidelines for Cost Allocation and Pricing Methodologies
11 Wherever reasonable, ECNZ and the RFE will contract for and incur their own costs as if they were fully independent entities, operating on a stand-alone basis. However, where ECNZ provides goods or services to the RFE or vice versa, the following guidelines for cost allocation and pricing will apply.
12 Goods and services transferred from ECNZ to the RFE and from the RFE to ECNZ will be priced to recover the full costs related or attributable to those goods and services. This will include all direct costs and a fair and reasonable allocation of any material indirect costs, related or attributable to those goods and services. ECNZ must satisfy the independent auditor each year that all goods and services transferred have been identified and that the cost allocation and recovery bases that have been applied are consistent with paragraph 13 below.
13 As part of its determination of specific accounting policies, ECNZ will develop a transparent costing model for each RFE, which identifies ECNZ's direct costs attributable to the goods and services supplied to the RFE, and sets out the basis for a fair and reasonable allocation of ECNZ's material indirect costs to the RFE. This allocation will reflect the relationships between the costs and the goods and services provided. Similar procedures will apply should the RFE provide any goods or services to ECNZ. The independent auditor will review the costing model(s) each year to ensure that the objectives of paragraph 12 are met. This review will include an examination of the validity of the model in terms of the above specifications, as well as an audit of the application of the model in that particular year, to ensure compliance.
Direct Costs
14 "Direct costs" are costs incurred by ECNZ that are directly attributable to the RFE (or vice versa).
Under paragraph 11, wherever possible ECNZ and the RFE will incur their own direct costs. However, where ECNZ provides any goods or services to the RFE, any actual directly attributable costs will be on-
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VUW Te Waharoa —
NZ Gazette 1996, No 172
NZLII —
NZ Gazette 1996, No 172
✨ LLM interpretation of page content
💰
Financial Guidelines for Depreciation
(continued from previous page)
💰 Finance & RevenueDepreciation, Accounting Standards, SSAP 3, SSAP 28
💰
Financial Guidelines for Cost Allocation and Pricing Methodologies
(continued from previous page)
💰 Finance & RevenueCost Allocation, Pricing Methodologies, Independent Auditor, Costing Model