New Zealand Gazette – 1997 – No. 102

Page 2387

✨ Accounting Policies and Asset Allocation



25 AUGUST NEW ZEALAND GAZETTE 2387

(d) Land and Roading is recorded at historic cost.

(e) Motor Vehicles are recorded at historic cost less accumulated depreciation.

All assets, except freehold land and roads are depreciated over their estimated useful lives on a straight line basis or diminishing value basis as considered appropriate, commencing from the time the asset is held ready for use.

The Economic life ranges for the various classes of assets are:-

(a) Hydro Assets

  • Dams - Headworks 50 to 99 years
  • Powerhouse and Associated Buildings 50 to 53 years
  • General Plant and Substations 26 years
  • Equipment and Tools 5 to 10 years

(b) Other Assets

  • Buildings and Residences 39 to 48 years
  • Distribution Equipment 16 to 25 years
  • Tools, Plant and Equipment 5 years
  • Motor Vehicles 5 years
  1. Taxation

The Taxation charge against the result for the year is the estimated liability in respect of that result after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. The Company follows the liability method of accounting for deferred taxation. Deferred taxation benefits are only recognised when there is virtual certainty of recovery in future periods.

  1. G.S.T.

These accounts are prepared exclusive of G.S.T except for Accounts Receivable and Accounts Payable which are inclusive of G.S.T.

  1. ASSET ALLOCATION

Under the Electricity (Information Disclosure) Regulations 1994, Otago Power Limited is defined as a line business, a Generation business and an Energy business.

The methodology for allocating costs, revenues, assets and liabilities between the businesses is on the same basis as outlined in the Electricity Disclosure Guidelines as issued by the Ministry of Commerce on 23rd June 1994.

CHANGES IN ACCOUNTING POLICIES

There have been no changes in accounting policies during the year. All accounting policies have been applied on a basis consistent with the prior year.



Next Page →

PDF embedding disabled (Crown copyright)

View this page online at:


VUW Te Waharoa — PDF NZ Gazette 1997, No 102


NZLII — PDF NZ Gazette 1997, No 102




✨ LLM interpretation of page content

🏭 Accounting Policies and Asset Allocation (continued from previous page)

🏭 Trade, Customs & Industry
Accounting Policies, Asset Allocation, Depreciation, Taxation, GST, Electricity, Otago Power Limited