✨ Accounting Policies Statement
3164 NEW ZEALAND GAZETTE No. 132
STATEMENT OF ACCOUNTING POLICIES (Continued)
f) Depreciation
Depreciation of fixed assets, other than freehold land, is calculated on a straight line basis so as to expense the cost of the assets, or the revalued amounts, to their residual values over their useful lives.
Major depreciation periods are:
- Buildings - 50 years
- Computer Equipment - 3 to 5 years
- Distribution System - 33 to 35 years
- Motor Vehicles - 6 to 10 years
- Plant and Equipment - 10 years
g) 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 is 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.
h) Employee Entitlements
Employee entitlements to salaries and wages, annual leave, long service leave and other benefits are recognised when they accrue to employees. This includes the estimated liability for salaries and wages, annual leave and long service leave as a result of services rendered by employees up to balance date.
i) Leases
SCANPOWER leases a truck for its lines maintenance work. Under the terms of the lease, all the risks and benefits of ownership effectively remain with the lessors. Lease payments are recognised as an expense in the periods the amounts are payable and a full disclosure of future commitments is provided in note 12.
j) Financial Instruments
Financial instruments carried on the statement of financial position include cash and bank balances, investments, receivables and trade creditors. These financial assets and financial liabilities are, generally, carried at their estimated fair value and, where appropriate, particular recognition methods adopted are disclosed in the individual policy statements associated with each item.
The company does not normally require deposits from customers except where there has previously been non-payment of outstanding accounts. No other form of security or collateral is required to support financial instruments with credit risk.
Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in the prior year.
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VUW Te Waharoa —
NZ Gazette 1999, No 132
NZLII —
NZ Gazette 1999, No 132
✨ LLM interpretation of page content
🏭
Statement of Accounting Policies by SCANPOWER LIMITED
(continued from previous page)
🏭 Trade, Customs & Industry10 September 1999
Accounting Policies, Depreciation, Income Tax, Employee Entitlements, Leases, Financial Instruments, SCANPOWER LIMITED