✨ Financial Statements Notes
3524 NEW ZEALAND GAZETTE No. 146
Collateral
The company does not require collateral or other security to support financial instruments with credit risk.
While the company may be subject to credit losses up to the notional principal or contract amounts in the event of non-performance by its counterparties, it does not expect such losses to occur.
Concentration of Credit Risk
The company does not have any significant concentrations of credit risk.
Cash and short term investments are placed with high credit quality financial institutions and limits are applied to the amount of credit exposure to any one financial institution.
Trade receivables credit risk is limited due to the large number of customers included in the company’s customer base.
(m) Generation Development Expenditure
Exploration, evaluation and development costs that relate to specific generation prospects are recognised as assets to the extent that such costs are expected to be recouped through successful development and generation of electricity. Costs will ultimately be amortised over the estimated economic life of a project.
Directors review the status of capitalised development expenditure on an annual basis and in the event that a project is abandoned, or if the directors consider the expenditure to be of no value, accumulated costs are written off in the year in which that assessment is made.
(n) Employee Entitlements
Employee entitlements to salaries and wages, non-monetary benefits, annual leave, long service leave and other benefits are recognised when they accrue to employees. This includes the estimated liability for salaries and wages, annual leave and long service leave as a result of services rendered by employees up to balance date.
(o) Changes in Accounting Policies
As described in notes 1(d) and 1(f) there have been changes in the accounting policies adopted for fixed assets and investments. There have been no other changes in accounting policies.
Next Page →
PDF embedding disabled (Crown copyright)
View this page online at:
VUW Te Waharoa —
NZ Gazette 1998, No 146
NZLII —
NZ Gazette 1998, No 146
✨ LLM interpretation of page content
🏭
Notes to the Financial Statements for TrustPower Limited
(continued from previous page)
🏭 Trade, Customs & IndustryCollateral, Credit Risk, Concentration of Credit Risk, Generation Development Expenditure, Employee Entitlements, Changes in Accounting Policies