New Zealand Gazette – 1999 – No. 124

Page 2959

✨ Financial Accounting Policies



17 SEPTEMBER NEW ZEALAND GAZETTE 2959

All assets, except freehold land and roads are depreciated over their estimated useful lives on a straight line basis or diminishing value basis as considered appropriate, commencing from the time the asset is held ready for use.

The Economic life ranges for the various classes of assets are:-

Buildings and Residences          39 to 48 years
Distribution Equipment            16 to 25 years
Tools, Plant and Equipment        5 years
Motor Vehicles                  5 years

  1. Taxation

    The Taxation charge against the result for the year is the estimated liability in respect of that result after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. The Company follows the liability method of accounting for deferred taxation. Deferred taxation benefits are only recognised when there is virtual certainty of recovery in future periods.

  2. G.S.T.

    These accounts are prepared exclusive of GST except for Accounts Receivable and Accounts Payable which are inclusive of GST.

  3. ASSET ALLOCATION

    Under the Electricity (Information Disclosure) Regulations 1999, Otago Power Limited is defined as a line business.

    The methodology for allocating costs, revenues, assets and liabilities between the businesses is on the same basis as outlined in the Electricity Disclosure Guidelines as issued by the Ministry of Commerce.

CHANGES IN ACCOUNTING POLICIES

The basis for allocating Costs, Revenues Assets and liabilities have changed in accordance with the mandatory requirements in the Information Disclosure guidelines.



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✨ LLM interpretation of page content

🏭 Information Disclosure for Otago Power Limited (continued from previous page)

🏭 Trade, Customs & Industry
Electricity, Information Disclosure, Otago Power Limited, Financial Statements, Accounting Policies