✨ Financial Statements Notes
2178 NEW ZEALAND GAZETTE No. 92
WAIPA POWER LIMITED - LINE BUSINESS
d) Capital Contributions
Contributions towards the cost of additions to the Reticulation Assets are recognised as income when received.
e) Depreciation
Land and Reticulation Assets are not depreciated. Depreciation has been provided on other fixed assets using the straight line method at rates which amortise the cost or valuation less estimated residual value over their economic lives.
Depreciation on assets purchased during the year has been charged on a monthly basis from month of purchase.
| Buildings | 3.0% |
| Motor Vehicles | 20.0% |
| Computers Equipment & Software | 20.0% |
| Plant, Furniture & Fittings | 10.0% |
f) Receivables
Receivables are stated at their estimated realisable value after adequate provision for doubtful debts. Bad debts are written off in the period they are identified.
g) Income Tax
The income tax expense charged to the Statement of Financial Performance includes both current and deferred tax. Deferred tax is calculated using the liability method, and is accounted for using the partial basis.
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) Inventories
Inventories are stated at the lower of weighted average cost and net realisable value. Cost of work in progress and finished goods includes the cost of direct material, direct labour and a proportion of the manufacturing overhead expended in putting the inventories in their present location and condition.
i) Financial Instruments
The Company includes all financial instrument arrangements in the statement of financial position using the concepts of accrual accounting. These instruments arise as a result of everyday operations and include: cash, receivables, creditors and investments. Revenues and expenses in relation to all financial instruments are recognised in the statement of financial performance. Financial instruments are shown at their fair values.
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VUW Te Waharoa —
NZ Gazette 1999, No 92
NZLII —
NZ Gazette 1999, No 92
✨ LLM interpretation of page content
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Notes to Financial Statements for Waipa Power Limited
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Fixed Assets, Reticulation Assets, Network Charges, Infrastructure Asset, Depreciation, Valuation, Capital Contributions, Receivables, Income Tax, Inventories, Financial Instruments