✨ Financial Statements Notes
3286 NEW ZEALAND GAZETTE No. 135
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (continued)
(d) Accounts Receivable.
Accounts Receivable are stated at their estimated net realisable value.
Receivables include an assessment for unbilled sales of electricity at balance date.
(e) Inventory
Inventory is stated at the lower of cost and net realisable value.
In arriving at net realisable value an allowance is made for deterioration and obsolescence.
(f) Research and Development Expenditure
Research and development expenditure is charged to expense as incurred.
(g) Revenue Recognition
Income from electricity sales includes an estimated amount for accrued electricity sales from meters unread at balance date.
(h) Changes in Accounting Policies
All policies have been applied on bases consistent with those used in the previous year with the exception of deferred taxation, which is now recognised on the partial basis. This policy has been adopted as timing differences on reticulation assets are not expected to crystallise in the foreseeable future.
The effect of this change in accounting policy is to increase the Network Business Unit net surplus by $11,315,000 of which $2,700,000 relates to the current year and $8,615,000 to prior years.
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VUW Te Waharoa —
NZ Gazette 1998, No 135
NZLII —
NZ Gazette 1998, No 135
✨ LLM interpretation of page content
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Notes to Financial Statements
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Accounts Receivable, Inventory, Research and Development, Revenue Recognition, Deferred Taxation