✨ Financial Statements
3958
NEW ZEALAND GAZETTE
No. 165
TRANSALTA NEW ZEALAND LIMITED
Notes to and forming part of the Financial Statements (Continued)
For the Year Ended 31 March 1998
Fixed and Long Term Assets are depreciated on a straight line basis. Depreciation is provided on all fixed assets at rates calculated to allocate the cost of acquisition, less estimated residual value, over their estimated useful lives. Fixed and long term asset depreciation periods are:
Depreciation Period
Electricity Distribution Assets 30-70 years
Energy Supply Assets 40 years
Leasehold Improvements 11 years
Motor Vehicles, Plant, Tools and Equipment 5 years
Office 5 years
Energy supply assets are intangible assets reflecting a conservative estimate of the assessed value of future net revenues from long term customers connected to the network and are amortised over their expected estimated useful life.
c) Accounts Receivable
Accounts receivable are stated at there estimated net realisable value.
d) Inventories
Inventories are valued at the lower of cost (determined on a weighted average basis) and net realisable value. Allowance is made for damaged and obsolete inventory.
e) Other Investments
Marketable securities and investments held for resale are stated at market value. Other investments are stated at cost with due allowance for any permanent reduction in value.
f) Taxation
Income tax expense is calculated using the liability method. Deferred tax is accounted for on a partial basis. Deferred tax assets are recognised only to the extent that there is virtual certainty of recovery.
g) Operating Lease Payments
Operating lease payments are expensed in the period in which they are incurred.
h) Interest Capitalised During Construction
Interest expense related to fixed assets under construction is included in the capital cost of the related asset.
i) Deferred Costs
Costs incurred by the Company to develop potential investments are deferred until an investment has been completed, at which time the costs are included with the investment. When it has been determined that an investment will not proceed, the related development costs are included in operating expenses. Financing costs are amortised to earnings over the remaining life of the relevant lending facility.
The information disclosed in the 1998 Information Disclosure package issued by TransAlta New Zealand Limited has been prepared solely for the purposes of the Electricity (Information Disclosure) Regulations 1994.
The information should not be used for any other purpose than that intended under the regulations.
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VUW Te Waharoa —
NZ Gazette 1998, No 165
NZLII —
NZ Gazette 1998, No 165
✨ LLM interpretation of page content
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Financial Statements of TransAlta New Zealand Limited
(continued from previous page)
🏭 Trade, Customs & Industry28 August 1998
Financial Statements, Accounting Policies, Electricity, Information Disclosure