New Zealand Gazette – 1997 – No. 105

Page 2450

✨ Financial Statements Notes



INVESTMENTS

Investments are shown at cost. Interest from investments has been accrued.

FIXED ASSETS

Fixed Assets, other than Land and Buildings, are stated at cost less accumulated depreciation. Land and Buildings are originally stated at cost and then revalued to latest Government Valuation less accumulated depreciation on buildings. As future revisions of Government Valuation are received Land and Buildings are revalued accordingly being a period not greater than three years from the previous valuation, with the exception stated in Note 11.

DEPRECIATION

Fixed Assets have been depreciated on the following basis.

  • Distribution Equipment 4% straight line on Cost
  • Buildings 2% straight line on Valuation
  • Generation Plant 4% straight line on Cost
  • Motor Vehicles 20% DV on Cost
  • Plant and Equipment 20% to 33% DV on Cost

TAXATION

The Income Tax charged to the Statement of Financial Performance includes both current and deferred tax and is calculated after allowing for non-assessable income and non-deductible costs. Deferred taxation, calculated using the comprehensive liability method, is accounted for in respect of those timing differences expected to reverse in the foreseeable future. A deferred tax benefit is recognised only if there is a virtual certainty of realisation.

DEVELOPMENT ASSETS

Development Costs Capitalised are valued at the lower of cost or Directors Valuation. Where a project has not yet reached a stage which permits a reasonable assessment of the likelihood of it continuing, the value attributed to the project remains capitalised. Project values are assessed at least annually to see if any diminution in value is likely to have accrued over and above any amortisation. Development costs are then written off or transferred to fixed assets.

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.

EMPLOYEE ENTITLEMENTS

Employee entitlements to salaries and wages, non-monetary benefits, annual leave, long service leave and other benefits are recognised when they accrue to employees. This includes the estimated liability for salaries and wages, annual leave and long service leave as a result of services rendered by employees up to balance date.

CHANGES IN ACCOUNTING POLICY

All accounting policies have been applied on a basis consistent with those used by the Company in the Period to 31 March 1996.



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✨ LLM interpretation of page content

🏭 Notes to the Financial Statements of King Country Energy Limited (continued from previous page)

🏭 Trade, Customs & Industry
Investments, Fixed Assets, Depreciation, Taxation, Development Assets, GST, Employee Entitlements, Accounting Policy