✨ Financial Accounting Policies
19 NOVEMBER NEW ZEALAND GAZETTE 4181
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
for the year ended 31 March 1999
(C) Fixed Assets
Owned assets
Fixed assets have been valued at their net realisable value.
transferred to equity.
Disposal of fixed assets
Where a fixed assets is disposed of, the profit or loss recognised in the statement of
financial performance is calculated as the difference between the sale price
and the carrying value of the fixed asset.
Depreciation
Depreciation is calculated on a straight line basis on all tangible assets other
than freehold land, (except for motor vehicles, plant and equipment),
to allocate the cost or revalued amount of an asset, less any residual value,
over its useful life.
Motor vehicles, plant and equipment are depreciated on a diminishing basis
over their useful lives.
Major depreciation periods are:
Freehold Buildings 50 years
Hydro Dam 100 years
Distribution Lines & Generation equipment 25 years
Other Plant & Equipment 8-10 years
(D) Inventories
Inventories are stated at net realisable value. The estimated
costs of marketing, selling and distribution are deducted in calculating net
realisable value.
(E) Receivables
Receivables are stated at estimated realisable value after providing against
debts where collection is doubtful.
(F) Taxation
Income tax expenses is recognised on the operating surplus before taxation adjusted
for permanent differences between taxable and accounting income. The tax effect of
all timing differences, which arise from items being brought to account in different
periods for income tax and accounting purposes has been included in the tax expense
figure for the current year.
(G) Employee entitlements
A liability for annual and long service leave accruing to employees is recognised in the
statement of financial position. The liability is stated at the present value of the
estimated future cash outflows to be incurred resulting from employees' services
provided up to balance date.
(H) Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been
applied on bases consistent with those used in previous years.
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VUW Te Waharoa —
NZ Gazette 1999, No 175
NZLII —
NZ Gazette 1999, No 175
✨ LLM interpretation of page content
🏗️
Statement of Significant Accounting Policies for Wairoa Power Limited
(continued from previous page)
🏗️ Infrastructure & Public WorksAccounting Policies, Financial Statements, Fixed Assets, Depreciation, Inventories, Receivables, Taxation, Employee Entitlements