✨ Financial Statements Notes
NEW ZEALAND GAZETTE
15 SEPTEMBER 2015
TRANSALTA NEW ZEALAND LIMITED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (continued)
FOR THE TWELVE MONTHS ENDED 31 MARCH 1997
11. STATEMENT OF ACCOUNTING POLICIES (continued)
| Depreciation Period | |
|---|---|
| Electricity Network Distribution Assets | 30-70 years |
| Electricity Distribution Equipment | 30-70 years |
| Other Fixed Assets | |
| Electricity Generation Equipment | 40 years |
| Buildings | 50 years |
| Motor Vehicles, Plant, Tools and Equipment | 5 years |
| Office Equipment | 5 years |
Energy supply assets are intangible assets and are amortised over their expected estimated useful life.
(g) Accounts Receivable
Accounts receivable are stated at their estimated net realisable value.
(h) Inventories
Inventories are valued at the lower of cost (determined on a weighted average basis) and net realisable value. Allowance is made for damaged and obsolete inventory.
(i) Other Investments
Marketable securities and investments held for resale are stated at market value. Other investments are stated at cost with due allowance being made for any permanent diminution in value.
(j) Joint Venture
The Company’s proportionate interest in the costs, revenues, assets and liabilities of its joint venture generator, Silverstream Landfill Gas, is included in the relevant components of the Energy business activities of the Electricity business as required by Section 6(3)(b) of the Electricity (Information Disclosure) Regulations 1994.
(k) Taxation
Income tax expense is calculated using the liability method. Deferred tax is accounted for on a partial basis. Deferred tax assets are recognised only to the extent that there is virtual certainty of recovery.
(l) Operating Lease Payments
Operating lease payments are expensed in the period in which they are incurred.
(m) Deferred Costs
Deferred costs are amortised over future periods on a basis related to expected future revenue. Unamortised costs are reviewed at each balance date to determine the amount (if any) that is no longer recoverable and any amount so identified is written off.
(n) Financial Instruments
The Company has various financial instruments for the primary purpose of reducing its exposure to fluctuations in wholesale electricity prices and interest rates. The hedging contracts are accounted for on the same basis as the underlying transactions. When a matching contractual electricity purchase and sale exists, the present value of the net charges has been recognised in the Statement of Financial Performance in the period the contracts were entered into.
Changes in Accounting Policies
There have been no changes in accounting policies during the period.
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VUW Te Waharoa —
NZ Gazette 1997, No 128
NZLII —
NZ Gazette 1997, No 128
✨ LLM interpretation of page content
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Financial Statements of TransAlta New Zealand Limited
(continued from previous page)
🌾 Primary Industries & Resources28 August 1997
Electricity, Financial Statements, Accounting Policies, TransAlta