New Zealand Gazette – 1998 – No. 192

Page 4514

✨ Financial Statements Accounting Policies



4514 NEW ZEALAND GAZETTE No. 192

Inventories

Inventories are stated at the lower of cost and net realisable value. Costs are assigned to inventories on hand at balance date using weighted average cost.

Investments

Investments are stated at cost price.

Fixed Assets

The distribution network is valued at optimised deprival value, valued at 30 June 1997 by Joanna Sofield, BMS (Hon.) and Dr Govind Saha, MBA, PhD. Eng, and Member IPENZ, of Ernst & Young.

All other fixed assets are recorded at cost.

Depreciation

Depreciation is provided on a straight line basis on all tangible fixed assets, at rates calculated to allocate the assets cost, or optimised deprival value, less estimated residual life, over their estimated useful lives.

Major depreciation rates are:

  • Mains & Services 2.5% S.L
  • Meters & Customer Station Rebuilds 2.5% S.L
  • Vehicles, Plant, Office Equipment & Furniture and Fittings 20% S.L
  • Computer Hardware & Software 33% S.L
  • Leasehold Improvements 10-15% S.L

Financial Instruments

The Company is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, short term deposits, debtors, creditors and loans. All financial instruments are recognised in the statement of financial position and all revenues and expenses in relation to financial instruments are recognised in the statement of financial performance.

Employee Entitlements

Provision is made in respect of the Company’s liability for annual leave and long service leave. Annual leave and long service leave have been calculated on an accrual entitlement basis, at current rates of pay.

Income Tax

The taxation charge against the profit for the period is the estimated liability in respect of that profit after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. This is the partial basis for the calculation of deferred taxation.

The Company follows the liability method of accounting for deferred taxation.

Changes in Accounting Policies

There have been no changes in accounting policy. All policies have been applied on bases consistent with those used in the previous period.



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✨ LLM interpretation of page content

🏭 Notes to the Financial Statements for Wanganui Gas Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial statements, Accounting policies, Gas distribution, Retail, Disclosure
  • Joanna Sofield, Valuer of distribution network
  • Govind Saha (Dr), Valuer of distribution network