New Zealand Gazette – 1997 – No. 141

Page 3270

✨ Financial Statements



Depreciation rates used are in accord with the determinations issued from time to time by the Inland Revenue Department.
These rates are as follows:

Generation system:

  • Powerhouses and buildings ... 1 % on cost price
  • Dams, headworks etc ... 1 % on cost price
  • Transmission lines ... 5 % on diminishing value
  • Generating equipment and plant ... 10 %–25 % on diminishing value

Other assets:

  • Buildings (concrete) ... 1 % on cost price
  • Buildings (wooden) ... 2 %–3.6 % on cost price
  • Reticulation system (global) ... 5 % on cost price
  • Reticulation system (from 1.4.87) ... 5 %–18 % on diminishing value
  • Substation equipment ... 7.5 %–39.6 % on diminishing value
  • Metering equipment ... 10 %–14.4 % on diminishing value
  • Plant ... 10 %–62.5 % on diminishing value
  • Motor vehicles, office, communications ... 20 %–25 % on diminishing value

1.6 RESEARCH AND INVESTIGATION EXPENDITURE

Research and investigation costs are charged to expense in the year in which they are incurred.
Development expenditure is capitalised to the extent that future benefits are expected to accrue.

1.7 EMPLOYEE ENTITLEMENTS

Employee entitlements to salaries and wages, annual and long service leave and other benefits are recognised when they accrue to employees.

1.8 FINANCIAL INSTRUMENTS

Financial instruments carried in the statement of financial position include cash and bank balances, receivables trade creditors and borrowings. These instruments are generally carried at their estimated fair value.
For example receivables are carried net of the estimated doubtful receivables.

Other financial instruments entered into by the company include foreign currency forward exchange contracts and electricity price hedging contracts. The purpose of these instruments is to reduce exposure to fluctuations in foreign currency and electricity spot market prices. Because these hedging contracts have the effect of offsetting gains or losses on the underlying transactions in the physical market, there is no recognition in the financial statements until maturity of the contracts.

1.9 CHANGES IN ACCOUNTING POLICIES

There have been no changes in accounting policies during the year.
All policies have been applied on bases consistent with those used in the prior year.



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🏭 Financial Statements of Marlborough Electric Limited (continued from previous page)

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Electricity, Financial Statements, Accounting Policies, Depreciation, Research, Employee Entitlements, Financial Instruments, Marlborough Electric Limited