New Zealand Gazette – 1999 – No. 134

Page 3228

✨ Accounting Policies



3228 NEW ZEALAND GAZETTE No. 134

(e) Fixed Assets

The distribution system is revalued by independent valuers every three years based on an optimised deprivation value basis. Additions to the distribution system are stated at cost.

Land and buildings are revalued by independent valuers every three years on the basis of open market value for existing use.

Cost for internally constructed assets comprise direct labour, materials, freight, and a proportion of production overheads based on a normal level of activity. All other fixed assets are recorded at cost less accumulated depreciation.

(f) Depreciation of Fixed Assets

Depreciation of the distribution system and buildings is provided for on a straight line basis over their estimated useful lives as follows:

Buildings 3.0%
Distribution system 2.9%

Depreciation of other fixed assets is provided for on a diminishing value basis as follows:

Furniture 20 - 25%
Plant and Equipment 20 - 30%
Vehicles 25%

(g) Principles of Line Business Split

The line business forms a segment of the operations of the Group. The allocation of costs, revenue, assets and liabilities was carried out on a basis which reflects the items attributable to this segment of the Group.

Where possible, financial statement items were allocated directly to the line business. In those instances where direct allocation was not possible, the avoidable cost allocation methodology was employed, which has resulted in allocations as follows:

Corporate Overheads

Corporate overhead costs were allocated as follows:

Directors fees and associated costs... Weighted fixed assets
Chief executive and associated costs... Weighted fixed assets
Consultants and business analysts... Weighted fixed assets
All other costs... Weighted staff numbers

Items have been weighted by multiplying the value attributable to Other by 33%

Property Costs

Allocated using market based rentals.



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✨ LLM interpretation of page content

🏭 Accounting Policies for WEL Energy Group Limited (continued from previous page)

🏭 Trade, Customs & Industry
Accounting policies, Fixed assets, Depreciation, Line business split, Corporate overheads, Property costs