✨ Financial Statements Accounting Policies
18 AUGUST NEW ZEALAND GAZETTE 2201
TAURANGA ELECTRICITY LIMITED
Major depreciation periods are:
Freehold buildings 40 years
Plant and equipment 5 to 15 years
Office furniture and equipment 5 to 10 years
Motor vehicles 4 to 5 years
Network assets 5 to 25 years
Under construction [Network] Nil
d] Leases
The company leases certain office furniture and equipment.
Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased items, are included in the determination of the operating profit in equal instalments over the lease term.
e] Income Tax
The income tax expense charged to the statement of financial performance includes both the current year’s provision and the income tax effects of timing differences calculated using the liability method.
f] Fixed Assets
All fixed assets are recorded at cost.
g] Receivables
Receivables are stated at their estimated realisable value.
h] Inventories
Inventories are stated at the lower of weighted average cost, determined on a first-in first-out basis and net realisable value.
Cost of work in progress and finished goods includes the cost of direct material, direct labour and a proportion of the manufacturing overhead based on the normal capacity of the facilities, expended in putting the inventories in their present location and condition.
i] Electricity Price Hedging Contracts
The value of transactions in terms of price hedging contracts is recognised as and when they occur.
j] Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in the previous year.
The accompanying Statement of Accounting Policies and Notes form part of and are to be read in conjunction with these Financial Statements. The Financial Statements have been prepared solely for the purpose of complying with Regulations 6[2] and 6[3] of the Electricity [Information Disclosure] Regulations 1994 and are not intended for any other purpose. [A:DR97]
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VUW Te Waharoa —
NZ Gazette 1997, No 92
NZLII —
NZ Gazette 1997, No 92
✨ LLM interpretation of page content
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Certification of Financial Statements and Performance Measures by Tauranga Electricity Limited
(continued from previous page)
🏭 Trade, Customs & Industry4 August 1997
Electricity, Financial Statements, Performance Measures, Certification, Tauranga, Regulations