✨ Financial Accounting Policies
2556 NEW ZEALAND GAZETTE No. 98
Electro Power Limited
Electricity Retailing Business
Statement of Accounting Policies
Fixed assets are depreciated on the following basis:
i. Assets acquired since 31 December 1992:
| Buildings | 2% | Straight Line |
| Computers | 25% | Straight Line |
| Motor Vehicles | 25% | Diminishing Value |
| Furniture & Fittings | 15% | 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.
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) Investments
Investments are stated at cost.
(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.
(f) Taxation
The taxation expense charged against profit for the year includes both current and deferred tax and is calculated after allowing for permanent differences.
Deferred taxation is calculated using the liability method applied on a partial basis. Deferred taxation arises from amounts of income or expenditure declared for taxation purposes in periods different from those in which they are dealt with in the financial accounts. By recognising these timing differences, the taxation charged in the accounts is directly related to profits reported. Future taxation benefits attributable to timing differences carried forward are recognised in the financial statements only where there is virtual certainty that the benefit of the timing differences will be utilised by the Company.
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VUW Te Waharoa —
NZ Gazette 1996, No 98
NZLII —
NZ Gazette 1996, No 98
✨ LLM interpretation of page content
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Financial statement disclosure for the Electricity Retailing Business
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statement, Disclosure, Electricity Retailing, Operating Revenues, Operating Expenses, Taxation, Retained Earnings, Accounting Policies