✨ Financial Statements Accounting Policies
14 SEPTEMBER NEW ZEALAND GAZETTE
2855
(c) Dividends
Dividends have been calculated in accordance with the Company’s dividend policy.
(d) Allocation of Assets and Liabilities
Assets and liabilities are those which are directly related to the Lines Business.
(e) Current Assets
Accounts receivable are those directly related to the Lines Business and are valued at expected realisable value less provision for doubtful debts.
(f) Fixed Assets
Network assets have been revalued to the 1 January 1997 Optimised Deprival Valuation of those assets. This valuation was carried out in accordance with the statutory requirements of the Electricity (Information Disclosure) Regulations 1994, prepared and certified by Coopers and Lybrand.
Furniture and fittings, plant and equipment, and motor vehicles are valued at market value as at 31 December 1992 and have been adjusted by accumulated depreciation, subsequent additions at cost and disposals at book value.
(g) Distinction Between Capital and Revenue Expenditure
Capital expenditure is defined as all expenditure on the creation of a new asset, and any expenditure which results in a significant improvement to the original function of an existing asset.
Revenue expenditure is defined as expenditure which maintains an asset in working condition and expenditure incurred in maintaining and operating the Company.
(h) Depreciation
Fixed assets are depreciated on the basis of valuation or cost price less estimated residual value on a straight line basis over their estimated useful life. Except for buildings and dams, no assets are deemed to have an economic life in excess of 25 years.
Rates used are:
| Asset Type | Depreciation Rate |
|---|---|
| Buildings | 1 - 2.5% |
| Plant and equipment | 2.5 - 15% |
| Network assets | 4 - 5% |
| Furniture and fittings | 10% |
| Computer equipment | 20% |
(i) Taxation
The Company is subject to taxation under the Income Tax Act 1976. Taxation is provided in the financial statements on the basis of the estimated taxation payable, after taking advantage of all available deductions and concessions.
(j) Goods and Services Tax
These accounts are prepared exclusive of GST except for accounts receivable and accounts payable which are GST inclusive.
Next Page →
PDF embedding disabled (Crown copyright)
View this page online at:
VUW Te Waharoa —
NZ Gazette 1999, No 120
NZLII —
NZ Gazette 1999, No 120
✨ LLM interpretation of page content
💰
Statement of Accounting Policies
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Financial Statements, Dividends, Assets, Liabilities, Depreciation, Taxation, GST