New Zealand Gazette – 1996 – No. 98

Page 2546

✨ Financial Accounting Policies



2546 NEW ZEALAND GAZETTE No. 98

Electro Power Limited

Line Business

Statement of Accounting Policies

Fixed assets are depreciated on the following basis:

i. Assets acquired since 31 December 1992:

Asset Type Depreciation Rate Method
Distribution 2.5% Straight Line
Buildings 2.0% Straight Line
Computers 25% Straight Line
Motor Vehicles 25% Diminishing Value
Mobile Plant 15% Straight Line
Furniture & Fittings 15% Straight Line
Plant & Equipment 10% Straight Line

ii. Assets purchased from Palmerston North City Council:

Management have assessed the remaining useful lives of these assets and they have been depreciated accordingly.

Land and Capital work in progress are not depreciated.

Depreciation of distribution lines commences when the assets are physically complete and livened.

When depreciated assets are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and any gains or losses on disposal are recognised in the Statement of Financial Performance.

(d) Inventories

Inventories are comprised principally of materials held for the self construction of network assets, and critical maintenance spares. They are stated at the lower of cost and net realisable value after due consideration for excess and obsolete items. Cost is determined on a weighted average cost basis.

(e) Accounts Receivable

Accounts receivable are recorded at expected realisable value after adequate provision for doubtful debts. Bad debts are written off in the period they are identified.



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✨ LLM interpretation of page content

🏭 Financial statement disclosure for the Line Business and Electricity Retailing Business (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statement, Disclosure, Line Business, Electricity Retailing, Accounting Policies, Depreciation, Inventories, Accounts Receivable