✨ Financial Statements Notes
GOVERNMENT VALUATIONS
Land and buildings at the Kuratau Power Station were valued by Valuation New Zealand as at 1 October 1992 at $4,300,000. This was considerably higher than the previous calculation of $332,000 as at 1 July 1989 and was due to Valuation New Zealand adopting the same method for valuation as they have used for Electricity Corporation power stations. The method is being appealed in the High Court by Electricity Corporation and King Country Energy Limited has appealed the valuation of $4,300,000.
For this reason the 1 July 1989 valuation of Kuratau Power Station has been shown in the accounts. Valuation New Zealand have confirmed that the Government Valuation of all land and buildings except the Kuratau Power Station are appropriate for financial reporting purposes. They cannot confirm this for the Power Station until after the outcome of Appeals to the High Court.
The Directors have considered all the circumstances and have used the Valuation which they consider would be most appropriate for consistency purposes in the accounts pending resolution of the outcome of Court decisions.
DEPRECIATION
Fixed Assets have been depreciated on the following basis.
- Distribution Equipment 4% straight line on Cost
- Buildings 2% straight line on Valuation
- Generation Plant 4% straight line on Cost
- Motor Vehicles 20% DV on Cost
- Plant and Equipment 20% to 33% on DV
TAXATION
The Income Tax charged to the Statement of Financial Performance includes both current and deferred tax and is calculated after allowing for non-assessable income and non-deductible costs. Deferred taxation, calculated using the liability method, is accounted for in respect of those timing differences expected to reverse in the foreseeable future. A deferred tax benefit is recognised only if there is a virtual certainty of realisation.
DEVELOPMENT ASSETS
Development Costs relate to Whangaehu/Karioi Hydro Generation Project and Kuratau Resource Consent Application which are still proceeding. Development Costs Capitalised are valued at cost or Directors Valuation less amounts written off. Where a project has not yet reached a stage which permits a reasonable assessment of the likelihood of it continuing, the value attributed to the project remains capitalised. Project values are assessed at least annually to see if any diminution in value is likely to have accrued over and above any amortisation. Development costs are then written off or transferred to fixed assets.
GOODS AND SERVICES TAX (GST)
The Statement of Financial Performance and Statement of Movements in Equity have been prepared so that all components are stated exclusive of GST.
CHANGES IN ACCOUNTING POLICY
All accounting policies have been applied on a basis consistent with those used by the Company in the Period to 31 March 1995 except for the adoption of accrual accounting for the provision of Retirement Benefits to recognise the accruing liability. This has resulted in the sum of $161,793 being charged in the Statement of Movements in Equity to recognise the liability at 1 April 1995 and a charge of $16,073 against Operating Surplus to reflect the current years’ accrual.
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VUW Te Waharoa —
NZ Gazette 1996, No 87
NZLII —
NZ Gazette 1996, No 87
✨ LLM interpretation of page content
💰 Government Valuations of Land and Buildings
💰 Finance & RevenueValuation, Kuratau Power Station, High Court, Electricity Corporation, King Country Energy
💰 Depreciation of Fixed Assets
💰 Finance & RevenueDepreciation, Fixed Assets, Distribution Equipment, Buildings, Generation Plant, Motor Vehicles, Plant and Equipment
💰 Taxation Policy
💰 Finance & RevenueIncome Tax, Deferred Tax, Non-assessable Income, Non-deductible Costs, Liability Method
💰 Development Assets Policy
💰 Finance & RevenueDevelopment Costs, Whangaehu/Karioi Hydro Generation Project, Kuratau Resource Consent, Capitalisation, Amortisation
💰 Goods and Services Tax (GST) Policy
💰 Finance & RevenueGST, Statement of Financial Performance, Statement of Movements in Equity
💰 Changes in Accounting Policy
💰 Finance & RevenueAccounting Policy, Accrual Accounting, Retirement Benefits, Operating Surplus