✨ Accounting Policies Statement
3492 NEW ZEALAND GAZETTE No. 146
(vi) Inventories
Stocks and work-in-progress are stated at the lower of cost and net realisable value.
The cost of stocks is principally determined on a weighted average basis.
The cost of work-in-progress includes materials, and a portion of direct labour and production overhead appropriate to the stage of completion attained.
(vii) Debtors
Debtors are stated at estimated realisable value after providing against debts where collection is doubtful.
(viii) Taxation
The taxation charge against the profit for the year is the estimated liability in respect of that profit after allowance for permanent differences. This is the comprehensive basis for the calculation of deferred taxation.
The Company follows the liability method of accounting for deferred taxation.
Future taxation benefits attributable to losses carried forward, or timing differences, are recognised in the financial statements only where there is virtual certainty of realisation.
(ix) Research and Development Costs
Research and development costs are normally expensed in the period incurred except that development costs are deferred where future benefits are expected to exceed these costs. Deferred development costs are amortised over future periods on a basis related to expected future revenue.
(x) GST
These Financial Statements are prepared on a GST exclusive basis.
Changes in Accounting Policies:
There have been no changes in accounting policies.
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VUW Te Waharoa —
NZ Gazette 1999, No 146
NZLII —
NZ Gazette 1999, No 146
✨ LLM interpretation of page content
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Statement of Accounting Policies for Northpower Ltd
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Financial Reporting, Northpower Ltd, Inventories, Debtors, Taxation, Research and Development, GST