✨ Financial Performance Statement
11 AUGUST
NEW ZEALAND GAZETTE
2065
f) Investments and Cash
Investments are valued at cost. Cash is defined as the day to day cash management funds including short term deposits.
g) Depreciation
Depreciation of fixed assets, other than freehold land, is calculated on a straight line basis so as to allocate the cost of the assets, or the revalued amounts less their residual value, over their useful lives.
Major depreciation periods are:
Buildings - 50 years
Computer Equipment - 3 to 5 years
Distribution System - 33 to 35 years
Motor Vehicles - 7 to 10 years
Plant and Equipment - 10 years
h) Taxation
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 when there is virtual certainty of realisation.
i) Employee Entitlements
These have been valued as the actual liabilities of SCANPOWER as at 31 March 1997. This includes the estimated liability for annual leave and long service leave as a result of services rendered by employees up to balance date.
j) Financial Instruments
The company places its cash deposits with high-credit quality financial institutions. The company does not normally require deposits from customers except for, those who have been disconnected. No other form of security or collateral is required to support financial instruments with credit risk.
SCANPOWER Limited has entered into electricity price hedging contracts with electricity generators in order to minimise the risk of price fluctuations on the electricity spot market. Assets, liabilities, and any unrealised revenues and expenses associated with these instruments as at balance date are not recognised in the financial statements. Realised revenues and expenses are recognised in the statement of financial performance on maturity of the hedging contracts and are incorporated as part of the cost of wholesale electricity.
Full disclosure of information about electricity price hedging contracts to which SCANPOWER Limited is a party is provided in note 14.
SCANPOWER Limited has various financial instruments with off-balance sheet risk for the primary purpose of reducing its exposure to fluctuations electricity spot market prices. While these financial instruments are subject to risk that market rates may change subsequent to acquisition, such changes would generally be offset by opposite effects on the items being hedged.
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VUW Te Waharoa —
NZ Gazette 1997, No 86
NZLII —
NZ Gazette 1997, No 86
✨ LLM interpretation of page content
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Scanpower Limited Financial Performance Statement
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🏭 Trade, Customs & IndustryFinancial Performance, Investments, Depreciation, Taxation, Employee Entitlements, Financial Instruments, Electricity, Scanpower Limited