New Zealand Gazette – 1999 – No. 129

Page 3111

✨ Financial Statements Notes



20 SEPTEMBER NEW ZEALAND GAZETTE 3111

Associate companies have been reflected in the consolidated financial statements on an equity accounting basis which shows the group's share of profits in the consolidated statement of financial performance and its share of post acquisition increases or decreases in net assets, in the consolidated statement of financial position.

c) Fixed Assets

The capital value of fixed assets is the value at either Optimised Depreciated Replacement Cost (ODRC), economic value or cost.

Valuations were completed by Coopers and Lybrand Independent Consultants. These valuations are recorded in the financial statements at the date of valuation being 31 March 1998. Assets are recorded as follows:

  • Electricity and gas network assets of the company - ODRC

The capital values of all other assets are recorded at cost.

d) Depreciation of Fixed Assets

Depreciation rates for major classes of asset are:

Land Not Depreciated
Buildings 1% SL
Furniture and Fittings 10% to 20% DV
Office Equipment 10% to 33% DV
Motor Vehicles 20% DV
Network Systems and Generation 1.8% to 2% SL and 5% to 14.4% DV

e) Receivables

Accounts receivable are valued at expected realisable value, after providing for doubtful debts. All known bad debts have been written off during the period under review.

f) Income Tax

The income tax expense charged to the Statement of Financial Performance includes both the current years expense and the income tax effect of timing differences using the liability method on a comprehensive basis.

g) Inventory

Inventory is valued at the lower of historical cost and net realisable value. The weighted average method has been used to determine historical cost.

h) Investments

Investments are valued at the lower of cost and net realisable value.

i) Revenue Recognition



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

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Financial Statements, Accounting Policies, Electricity, Gas, Hydro Generation, Disposal, Regulations