✨ Financial Statements Accounting Policies
8 OCTOBER
NEW ZEALAND GAZETTE
3417
(c) Goods and Services Tax (GST)
The Statement of Financial Performance and Statement of Cash Flows have been prepared so that all components are stated exclusive of GST. All items in the Statement of Financial Position are stated net of GST with the exception of receivables and payables which include GST invoiced.
(d) Fixed Assets
All fixed assets are initially recorded at cost.
Land and buildings are revalued on a cyclical basis every three years. Freehold land and buildings were subsequently revalued as at 31 March 1999 to net current value by an independent valuer.
Distribution system assets were revalued in 1997 to a carrying value which equated to 80% of Optimised Deprival Value (ODV).
Plant and equipment, computer equipment and motor vehicles are valued at cost less depreciation.
(e) Depreciation
Fixed assets have been depreciated in order to write off cost less estimated residual value over their estimated useful life on the following basis:
| Distribution System | depreciated based on assessed residual life |
| Buildings (revalued) | 2% SL |
| Plant and Equipment | 20% DV |
| Motor Vehicles | 20% DV |
| Computer Equipment | 48% DV |
(f) Taxation
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 has been 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.
(g) Vested Assets
Vested assets from customers are credited to the Statement of Financial Performance.
(h) Receivables
Receivables are stated at their estimated realisable value. An estimate is made for doubtful debts based on a review of all outstanding amounts at year end. Bad debts are written off during the period in which they are identified.
(i) Inventories
Inventories have been stated at the lower of cost and net realisable value. Inventory has been valued on the basis of weighted average cost during the year.
The reticulation inventory held for the purpose of supporting the existing distribution network is accounted for as a fixed asset.
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VUW Te Waharoa —
NZ Gazette 1999, No 143
NZLII —
NZ Gazette 1999, No 143
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Network Tasman Limited Line Business Financial Statements for 1999
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🏭 Trade, Customs & IndustryFinancial Performance, Revenue, Earnings, Taxation, Dividends, Network Tasman Limited