✨ Financial Statements Notes
NEW ZEALAND GAZETTE
No. 119
TOP ENERGY LIMITED
NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS
STATEMENT OF ACCOUNTING POLICIES
FOR THE 12 MONTHS ENDED 31 MARCH 1997
3 Taxation
The taxation charged against the profit for the year is the estimated liability in respect of that profit after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. This is the partial basis for the calculation of deferred taxation.
The Company follows the liability method of accounting for deferred taxation. Future taxation benefits attributable to timing differences or to losses carried forward are recognised in the financial statements only where there is virtual certainty that the benefit of the losses will be utilised by the Company.
4 Accounts Receivable
Accounts receivable are stated at estimated realisable value after providing against debts where collection is doubtful.
5 Inventories
Stocks are stated at the lower of cost and net realisable value. Cost is principally determined on a weighted average cost basis and, in the case of manufactured goods, includes direct materials, labour and production overheads.
6 Fixed Assets
Fixed assets held by the former Bay of Islands Electric Power Board were vested in the Company, Top Energy Ltd, on 1 May 1993 under the Energy Companies Act 1992. Fixed assets were vested at book value as at 1 May 1993, and represent "cost" to the Company.
The cost of fixed assets purchased after 1 May 1993 is the value of the consideration given to acquire the assets and the value of other directly attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended service.
The infrastructural asset is valued at a business valuation which the Directors consider to be a fair value.
The infrastructural asset is revalued on a three year cyclical basis by independent registered valuers. A business valuation is based on the ODV valuation and this results in the revised infrastructural asset valuation. Additions to the infrastructure are incorporated at cost in the intervening time between revaluations.
Capital work-in-progress includes materials, and a portion of direct labour and production overhead appropriate to the stage of completion attained.
Land and Buildings relating to substations are "owned" by the lines business.
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VUW Te Waharoa —
NZ Gazette 1997, No 119
NZLII —
NZ Gazette 1997, No 119
✨ LLM interpretation of page content
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Notes to the Special Purpose Financial Statements
(continued from previous page)
🏭 Trade, Customs & Industry8 September 1997
Financial Statements, Accounting Policies, Taxation, Accounts Receivable, Inventories, Fixed Assets, Top Energy Limited