New Zealand Gazette – 1997 – No. 120

Page 2845

✨ Financial Statements Notes



9 SEPTEMBER NEW ZEALAND GAZETTE

2845

Notes to and Forming Part of the Financial Statements

For the Year Ended 31 March 1997

c) Fixed Assets

The capital value of fixed assets is the value at either Optimised Depreciated Replacement Cost (ODRC), economic value or cost.

ODRC Valuations were completed by KPMG Peat Marwick, independent consultants, and the economic values were completed by Southpac Corporation, independent consultants. These new valuations were recorded in the financial statements at the date of valuation being 31 March 1997. Assets are recorded as follows:

  • Electricity and gas network assets of the company - ODRC
  • The three generating stations owned by the company - Economic value.

The capital values of all other assets are recorded at cost.

d) Depreciation of Fixed Assets

Depreciation rates for major classes of asset are:

Asset Class Depreciation Rate
Land Not Depreciated
Buildings 1% SL
Furniture and Fittings 10% to 20% DV
Office Equipment 10% to 33% DV
Motor Vehicles 20% DV
Network Systems and Generation 2% SL and 5% to 14.4% DV

These rates were revised as at 31 March 1997 in conjunction with the revaluation of fixed assets as at that date. The revised rates which will be applicable from 1 April 1997 are in accordance with industry guidance as to best practice.

e) Receivables

Accounts receivable are valued at expected realisable value, after providing for doubtful debts. All known bad debts have been written off during the period under review.

f) Income Tax

The income tax expense charged to the Statement of Financial Performance includes both the current years expense and the income tax effect of timing differences using the liability method on a comprehensive basis.

Previously a partial basis of recording these amounts was applied. In conjunction with the asset revaluation exercise the company has adopted international accounting standards and moved to a comprehensive liability recognition basis.



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✨ LLM interpretation of page content

🏭 Powerco Limited Statement of Movements in Equity (continued from previous page)

🏭 Trade, Customs & Industry
31 March 1997
Financial Statements, Equity, Operating Surplus, Revaluation, Deferred Taxation, Shareholder Contributions, Share Repurchase, Dividends, Reserves Transfers, Fixed Assets, Depreciation, Receivables, Income Tax