✨ Financial Accounting Policies
NEW ZEALAND GAZETTE
No. 96
(c) Goods and Services Tax (GST)
The Statement of Financial Performance has been prepared so that all components are stated exclusive of GST. All items in the Statement of Financial Position are stated net of GST with the exception of receivables and payables which include GST invoiced.
(d) Fixed Assets
All fixed assets are initially recorded at cost.
Freehold land and buildings were subsequently revalued on 1 April 1991 to government valuation dated October 1990.
Distribution system assets have been valued in the accounts to reflect the present market value independently established by Landcorp Property Limited, registered valuers, using discounted cash flow techniques. The valuation report is dated 31 March 1993. All subsequent additions are at cost less depreciation.
Motor vehicles are valued at book values established in April 1987, plus additions at cost less depreciation.
Plant and equipment and computer equipment are valued at cost less depreciation.
No allowance for depreciation has been made on the cost of assets prior to 1 April 1976, the commencement of 1977 Accounting Regulations.
(e) Taxation
The income tax expense charged to the Statement of Financial Performance includes both the current year’s provision and the income tax effects of timing differences calculated using the liability method.
Tax effect accounting is applied on a comprehensive 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.
(f) Receivables
Receivables are stated at their estimated realisable value. An estimate is made for doubtful debts based on a review of all outstanding amounts at year end. Bad debts are written off during the period in which they are identified.
(g) Inventories
Inventory has been stated at the lower of cost and net realisable value. Inventory has been valued on the basis of average cost during the year.
The reticulation stock held for the purpose of supporting the existing distribution network is accounted for as a fixed asset.
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VUW Te Waharoa —
NZ Gazette 1996, No 96
NZLII —
NZ Gazette 1996, No 96
✨ LLM interpretation of page content
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Tasman Energy Limited Financial Performance
(continued from previous page)
💰 Finance & RevenueFinancial Performance, Revenue, Operating Profit, Surplus, Taxation, Dividends, Retained Earnings, Accounting Policies, Consolidation, Revenue Recognition, GST, Fixed Assets, Taxation, Receivables, Inventories