✨ Financial Accounting Policies
4156 NEW ZEALAND GAZETTE No. 174
Depreciation
Depreciation is charged against all fixed assets, with the exception of freehold land on a straight line basis at rates which amortise the cost or revalued amount of each asset over their estimated economic lives.
The main bases are periods not exceeding :-
- Leasehold Land 14 Years
- Buildings 20 Years
- Distribution Network 80 Years
- Motor Vehicles 5 Years
- Fixtures & Fittings 5 Years
Taxation
The charge against income for taxation is the total estimated liability in respect of the accounting profit reported for the period after deduction of all tax incentives available and includes any adjustments in respect of prior years.
The net effect of timing differences between accounting and taxable profits is shown as deferred taxation, calculated by using the liability method applied on a comprehensive basis and may be payable / receivable in the future
Valuation of Inventories
Inventories are valued at the lower of cost (FIFO or weighted average) or net realisable value on a basis consistent with the previous year. An allowance for obsolescence has been assessed on inventories where appropriate
Changes in Accounting Policies
There have been no changes in accounting policies during the year.
Internal Sales
Due to the separation of the distribution business from the other contestable businesses areas internal transactions between the business areas have not been eliminated.
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VUW Te Waharoa —
NZ Gazette 1997, No 174
NZLII —
NZ Gazette 1997, No 174
✨ LLM interpretation of page content
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Certification of Financial Statements and Performance Measures by Enerco New Zealand Limited
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🏭 Trade, Customs & IndustryGas, Information Disclosure, Financial Statements, Performance Measures, Regulations, Accounting Policies, Depreciation, Taxation, Valuation, Inventories, Accounting Policies, Internal Sales