✨ Accounting Policies
13 SEPTEMBER NEW ZEALAND GAZETTE 2813
Accounts receivable
Accounts receivable are valued at net realisable value.
Stock
Stock is valued at the lower of cost or net realisable value. Cost is determined using the weighted average method.
Work in progress is valued at cost comprising direct labour, materials, transport and an overhead proportion based on labour hours.
Income tax
The taxation charge against profit for the year includes both the income tax payable on assessable income in the period, and the income tax effects of timing differences using the liability method.
Tax effect accounting is applied on a comprehensive basis to all timing differences. This represents a change in accounting policy. Previously the partial basis of deferred taxation was applied in that timing differences not expected to reverse in the foreseeable future were not accounted for.
Future tax benefits attributable to tax losses or timing differences are only recognised when there is virtual certainty of realisation.
Goods and services tax
The financial statements have been prepared with both income and expenditure items exclusive of GST. In the Statement of financial position, accounts receivable and accounts payable are both inclusive of GST. Other assets and liabilities are exclusive of GST.
Statement of cashflows
The statement of cashflows is prepared exclusive of GST, which is consistent with the methods used in the statement of financial performance.
Cash means cash balances on hand and held in bank accounts and on deposit in which the company invests as part of its day-to-day cash management.
Operating activities include cash received from all income sources of the company and records the cash payments made for the supply of goods and services.
Investing activities are those activities relating to the acquisition and disposal of non-current assets.
Financing activities comprise the change in equity and debt capital structure of the company.
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, and loans. All financial instruments are recognised in the statement of financial performance.
Except for loans, which are recorded at cost, and those items covered by a separate accounting policy, all financial instruments are shown at their estimated fair value.
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VUW Te Waharoa —
NZ Gazette 1999, No 117
NZLII —
NZ Gazette 1999, No 117
✨ LLM interpretation of page content
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Central Electric Limited Statement of Accounting Policies
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🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Income Tax, Goods and Services Tax, Statement of Cashflows, Financial Instruments