✨ Financial Statements Accounting Policies
3630 NEW ZEALAND GAZETTE No. 150
(h) Investments
Investments are valued at cost.
(i) Current Assets
Accounts Receivable are valued at expected net realisable value. Inventory is valued at the lower of cost, determined on a weighted average basis, or net realisable value.
(j) Taxation
The income tax expense charged to the Statement of Financial Performance is the estimated liability in respect of the operating surplus for the year and is calculated after allowance for permanent differences.
The Company uses the liability method of accounting for deferred taxation and applies this on a comprehensive basis. Future tax benefits attributable to tax losses or timing differences are only recognised when there is virtual certainty of realisation.
(k) Leases
The Company leases certain plant and equipment and land and buildings. Expenses relating to operating leases are charged against earnings as incurred. The lease liabilities are disclosed.
Finance leases, which effectively transfer to the entity substantially all of the risks and benefits incident to ownership of the leased item, are capitalised at the present value of the minimum lease payments. The leased assets and corresponding liabilities are disclosed and the leased assets are depreciated over the period the entity is expected to benefit from their use.
(l) 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. Deferred development costs are amortised over future periods on a basis related to expected future revenue.
(m) Foreign Currencies
Transactions in foreign currencies are converted at the New Zealand rate of exchange ruling at the date of the transaction.
At balance date, foreign monetary assets and liabilities are translated at the closing rate, and exchange variations arising from these translations are included in the Statement of Financial Performance.
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VUW Te Waharoa —
NZ Gazette 1998, No 150
NZLII —
NZ Gazette 1998, No 150
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Eastland Energy Limited Financial Statements
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🏭 Trade, Customs & Industry7 August 1998
Financial Statements, Electricity, Disclosure, Regulations, Eastland Energy