✨ Financial Accounting Policies
3122 NEW ZEALAND GAZETTE No. 133
DEPRECIATION:
The useful lives of major classes of assets have been estimated as follows:
| Buildings | 50 - 100 years | (1-2%)
| Distribution Lines | 20 years | (5%)
| Sub Stations | 20 years | (5%)
| Distribution Transformers | 20 years | (5%)
| Load Control Equipment | 5 years | (20%)
| Meters | 5 years | (20%)
| Globo Distribution Assets | 20 years | (5%)
| Motor Vehicles | 5 years | (20%)
| Plant & Equipment | 5 years | (20%)
| Tools | 5 years | (20%)
| Office Furniture & Fittings | 5 years | (20%)
Work in Progress is not depreciated. The total cost of a project is transferred to Distribution assets and/or plant and equipment on its completion and then depreciated.
TAXATION:
The income tax expense charged against the profit for the period is the estimated liability in respect of that profit and is calculated after allowance for permanent differences and timing differences not expected to reverse in future periods. This is the partial basis for the calculations of deferred taxation.
The Company uses the liability method of accounting for deferred taxation. Future tax benefits attributable to tax losses or timing differences are only recognised when there is virtual certainty realisation.
Goods and Services Taxation:
The Financial Statements have been prepared exclusive of goods and services tax (GST) with the exception of receivables and payables which are stated with GST included. Where GST is irrecoverable as an input tax then it is recognised as part of the related asset or expense.
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VUW Te Waharoa —
NZ Gazette 1997, No 133
NZLII —
NZ Gazette 1997, No 133
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Financial Statement Disclosure by Line Owner
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