✨ Financial Statements Notes
1 SEPTEMBER NEW ZEALAND GAZETTE 2525
HAWKE’S BAY NETWORK LIMITED AND SUBSIDIARY
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 1999
Inventories are stated at the lower of average cost and net realisable value.
f) Work in Progress
Work in progress includes the cost of materials and other direct and indirect costs incurred as at balance date.
g) Recognition of Income
Sales of electricity were determined on the basis of actual and interim amounts billed during the year, together with an accrual for unbilled sales as at the date of sale of the electricity retail business.
h) Income Tax
The income tax expense charged to the statement of financial performance includes both the current year’s provision and the income tax effects of timing differences calculated using the liability method.
Tax effect accounting has been applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.
The deferred income tax effect of the timing difference arising from the revaluation of the network assets has been recognised directly against the revaluation reserve.
i) Financial Instruments
Financial instruments such as bank balances, bank investments, receivables, accounts payable and term debt are included in the accounts at their estimated fair value. Electricity Price Hedging Instruments are included at their novation cost.
Changes in Accounting Policies
Apart from the changes in the methods of valuing Network Assets and Land and Buildings as at 31 March 1999, no other changes to accounting policies have been applied. As a consequence of this change in valuation, the value of the Company’s distribution network has increased by $49,404,934, the value of Land increased by $713,997 and Buildings decreased by $2,957,141
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VUW Te Waharoa —
NZ Gazette 1999, No 106
NZLII —
NZ Gazette 1999, No 106
✨ LLM interpretation of page content
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Hawke's Bay Network Ltd Financial Statements Notes
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🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Inventories, Work in Progress, Income Recognition, Income Tax, Financial Instruments, Accounting Changes, Hawke's Bay Network Ltd