✨ Financial Statements
17 SEPTEMBER NEW ZEALAND GAZETTE
3049
Depreciation rates for major assets are as follows:-
| Rate | Basis | |
|---|---|---|
| Buildings | 1 to 2.5% | Straight Line |
| Plant and Equipment | 10% to 50% | Diminishing Value/ |
| Dams and Headworks | 1% | Straight Line |
| Office Furniture & EDP Equipment | 4% to 40% | Diminishing Value/ |
| Motor Vehicles | 13.5% to 25% | Diminishing Value/ |
| Globo Distribution System | 4% | Straight Line |
| Distribution System Assets | 5 to 10% | Diminishing Value/ |
| 110kV Transmission Line | 4% | Straight Line |
(iv) ACCOUNTS RECEIVABLE
Accounts Receivable are stated at estimated realisable value after providing against debts where collection is doubtful. All known bad debts have been written off during the year.
(v) INVENTORIES
Inventories are valued at weighted average cost price as landed in the store. Obsolete items of inventory have been written off.
(vi) INVESTMENTS
The investments are recorded at cost.
(vii) VALUATION OF FIXED ASSETS
Land is valued at cost. Buildings have been stated at deemed cost as at 1 October 1993.
The distribution system has been revalued to its Optimised Deprival Value (ODV) as at 31 March 1996 by Coopers & Lybrand and this value is not in excess of the recoverable value. The system is revalued on a two yearly cycle. Any distribution assets acquired since the valuation are stated at their cost less any accumulated depreciation.
The Patea dam and generation assets were revalued as at 31 March 1997 up to a value determined by Coopers & Lybrand of Wellington, using the net current value method. The Patea dam and generation asset is revalued annually.
All other Fixed Assets are shown at cost less accumulated depreciation calculated as stated in Policy (ii), above.
(viii) INCOME TAX
The provision for income tax is calculated using the liability method prepared on a partial basis. A debit balance in the deferred tax account arising from timing differences or income tax benefits arising from income tax losses is only recognised if there is virtual certainty of realisation.
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VUW Te Waharoa —
NZ Gazette 1997, No 131
NZLII —
NZ Gazette 1997, No 131
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Statement of Financial Position for Egmont Electricity Limited
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🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Revenue Recognition, Depreciation, Egmont Electricity Limited