✨ Financial Statements
2380 NEW ZEALAND GAZETTE No. 91
A provision for obsolescence is made for inventory which has not moved within the previous twelve month period. The provision represents the average cost of all inventory items considered obsolete.
Work in progress is valued at net realisable value.
b) Leases
Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased items, are included in the determination of operating surplus in equal instalments over the lease term.
i) Contributions for Subdivisions/Uneconomic Lines
Capital contributions received from customers towards the cost of reticulating new subdivisions and constructing uneconomic lines are offset against the capital cost of the related network assets.
j) Accounting for Goods and Services Tax
All items shown in the financial statements are net of Goods and Services tax, except for receivables and payables which are shown at the gross amount.
k) Disclosure of methodologies for allocation of costs, revenues, assets and liabilities
The costs, revenues, assets and liabilities of the company have been allocated between the Energy and Line businesses in accordance with the methodology set out in the Ministry of Commerce Guidelines with the following variations:
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Billing and metering costs are allocated between the Line and Energy businesses on a 50 : 50 basis.
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Allocation of sundry accruals, between the Line and energy businesses, is on the basis of cost of sales.
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Allocation of indirect rates costs, between the Line and Energy businesses, is on the basis of floor area occupied.
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Allocation of indirect cleaning costs, between the Line and Energy businesses, is on the basis of floor area occupied.
With the exception of the allocation of billing and metering costs none of the departures above materially impact the financial statements. This departure in allocating billing and metering costs increases the Energy business' net profit after tax and retained earnings by $475,000 and decreases the Lines business' net profit after tax and external earnings by $475,000.
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VUW Te Waharoa —
NZ Gazette 1996, No 91
NZLII —
NZ Gazette 1996, No 91
✨ LLM interpretation of page content
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CentralPower Limited Financial Performance
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🏭 Trade, Customs & IndustryFinancial Statements, Revenue, Expenses, Net Profit, Taxation, Energy, Lines, Accounting Policies, Depreciation, Receivables, Income Tax, Inventories, Leases, Subdivisions, Goods and Services Tax, Cost Allocation, Methodologies, Billing, Metering, Floor Area