New Zealand Gazette – 1998 – No. 143

Page 3471

✨ Financial Disclosure Notices



14 SEPTEMBER NEW ZEALAND GAZETTE

3471

(b) Capital contributions

Capital contributions which are refundable to customers are treated as current liabilities until refunded. Non-refundable contributions are credited to income when received.

(c) Depreciation

Depreciation has been provided on fixed assets using the straight line method at rates which amortise the cost or valuation, less estimated residual value, over their economic lives.

The main bases are periods not exceeding:

Distribution System:

  • Electricity distribution system 70 years
  • Meters and load control equipment 30 years

Buildings 50 years
Cars and vans 5 years
Trucks 7 years
Plant and equipment 10 years
Computer equipment and software 3 years

(d) Research and development costs

Research and development costs are expensed in the period incurred. Development costs are deferred where future benefits are expected to exceed those costs, otherwise such costs are expensed in the period incurred. Deferred development costs are amortised over periods in relation to expected future revenue. Unamortised costs are reviewed at each balance date to determine the amount (if any) that is no longer recoverable and any amounts, so identified, are expensed.

(e) Distinction between capital and revenue expenditure

Capital expenditure is defined as all expenditure incurred in the creation of a new asset and any expenditure which results in a significant improvement of the original function of an existing asset.

Constructed assets are included in fixed assets as each becomes operational and available for use.

Revenue expenditure is defined as expenditure which restores an asset closer to its original condition and all expenditure incurred in maintaining and operating the fixed assets of the group.

(f) Accounts receivable

Accounts receivable are valued at their expected realisable value. All known bad debts are written off during the financial year. Hire purchase debtors exclude unearned interest (calculated using the "Rule of 78" method).



Next Page →

PDF embedding disabled (Crown copyright)

View this page online at:


VUW Te Waharoa — PDF NZ Gazette 1998, No 143


NZLII — PDF NZ Gazette 1998, No 143




✨ LLM interpretation of page content

🏗️ Southpower Limited Information Disclosure (continued from previous page)

🏗️ Infrastructure & Public Works
Electricity, Financial Disclosure, Southpower Limited, Regulations, Accounting Policies