✨ Financial Statements Notes
NEW ZEALAND GAZETTE
No. 110
CENTRALPOWER GROUP
Line Business and Electricity Retailing
Notes to and forming part of the Financial Statements (cont.)
For the Year Ended 31 March 1998
d) Depreciation
Depreciation is provided on a straight line basis on all tangible fixed assets other than freehold land, at rates calculated to allocate the assets' cost or valuation, less estimated residual value, over their estimated useful lives.
Major depreciation rates are:
- Buildings 25 to 50 years
- Network 35 to 70 years
- Motor vehicles 3 to 10 years
- Plant and equipment 3 to 15 years
e) Income Tax
The income tax expense charged to the statement of financial performance includes both the current year liability and the income tax effects of timing differences after allowing for non-assessable income and non-deductible expenses.
Deferred taxation is calculated using the liability method on a partial basis. Debit balances in the deferred tax account arising from net accumulated timing differences and future income tax benefits arising from income tax losses carried forward are only recognised if there is virtual certainty of realisation.
f) Inventories
Inventories are valued at the lower of cost or net realisable value including a share of fixed and variable overheads where appropriate. Cost is determined using the average cost method.
A provision for obsolescence is made for inventory which represents the average cost of all inventory items considered obsolete.
Work in progress on construction contracts is valued at the lower of cost and contract expenses, valued using the percentage of completion method.
g) Contributions for new Subdivision/Uneconomic Lines
Capital contributions received from customers towards the cost of reticulating new subdivisions and constructing uneconomic lines are included in the surplus before taxation.
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VUW Te Waharoa —
NZ Gazette 1998, No 110
NZLII —
NZ Gazette 1998, No 110
✨ LLM interpretation of page content
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🏭 Trade, Customs & IndustryElectricity, Financial Statements, Line Business, Retailing, CentralPower Group