✨ Accounting Policies Statement
11 JULY NEW ZEALAND GAZETTE 1731
(c) Fixed Assets
At 31 March 1997, Network Assets are recorded at the 31 March, 1995 optimised deprival value plus additions at cost less disposals at ODV; Other Assets are shown at depreciated cost.
(d) Distinction Between Capital and Revenue Expenditure.
Capital expenditure is defined as all expenditure on the creation of a new asset and any expenditure which results in a significant improvement to the original function of an existing asset.
Revenue expenditure is defined as expenditure which maintains an asset in working condition, and expenditure incurred in maintaining asset service performance, and the operation of the Company.
(e) Depreciation
In accordance with Sec 14.(5)(b) of the Electricity (Information Disclosure) Regulations 1994, no depreciation has been written off Network Assets, these having been accounted for on a Renewal Accounting basis. Other Assets have been depreciated on a straight line basis.
(f) Receivables:
Receivables are stated at their estimated realisable value.
(g) Income Tax:
The income tax expense charged against the profit for the year is the estimated liability calculated at 33 cents in the dollar in respect of that profit.
(h) Work in Progress:
The cost of work in progress includes the cost of direct material and direct labour used in putting replacement and new systems in their present location and condition.
(i) Goods and Services Tax
These Accounts have been prepared on a GST exclusive basis with the exception of Sundry Debtors and Creditors which are GST inclusive.
CHANGES IN ACCOUNTING POLICIES
These Accounts are prepared using modified Renewal Accounting methodology and are for the sole purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1994. As a consequence these accounts are not comparable with the Company’s published consolidated financial statements.
External Contracting has been separated out this year as the 5% threshold in Regulation 6(6) was exceeded. Comparative figures have been restated to ensure comparability.
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NZ Gazette 1997, No 71
✨ LLM interpretation of page content
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Statement of Accounting Policies
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Financial Reporting, Electricity, Renewal Accounting, GST