✨ Financial Statements
NEW ZEALAND GAZETTE
No. 84
THE POWER COMPANY LIMITED
LINE & OTHER BUSINESS
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 1997
3.1 COSTS AND REVENUE
Costs and Revenues where appropriate have been directly attributed to the Line or Other Business. Overhead expenditure in relation to External Contracting Activities has been allocated on the percentage total revenue, and all other Costs and Revenues have been allocated on the basis outlined in the Disclosure Regulations.
3.2 FIXED ASSETS
At 31 March 1997 all assets including Network Assets are recorded at cost less accumulated depreciation.
3.3 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 the service performance and operation of the Company.
3.4 DEPRECIATION
Fixed assets are depreciated on the basis of cost price less estimated residual value over the period of their estimated useful life.
Rates used are:
- Buildings ... 1% SL - 4% DV
- Furniture, Fittings & EDP Equipment ... 10% DV - 50% DV
- Motor Vehicles ... 20% DV - 25% DV
- Network Assets ... 1% SL - 22% DV
3.5 RECEIVABLES
Receivables are stated in their estimated realisable value.
3.6 INCOME TAX
The income tax expense charged against the profit for the year is the estimated liability in respect of that profit and is calculated after allowance for permanent differences. The Company uses the liability method of accounting for deferred taxation and applies this on a comprehensive basis. Future tax benefits attributable to tax losses or timing differences are only recognised where there is virtual certainty of realisation.
Next Page →
NZ Gazette 1997, No 84
✨ LLM interpretation of page content
🏭
Electricity Information Disclosure by The Power Company Limited
(continued from previous page)
🏭 Trade, Customs & IndustryElectricity, Financial Statements, Accounting Policies, Line Business, Other Business