✨ Financial Statements and Accounting Policies
13 AUGUST NEW ZEALAND GAZETTE 2275
Inventories
Inventories are stated at the lower of cost (calculated on an average cost basis) or estimated realisable value. This valuation includes an adjustment for slow moving and obsolete inventories. Work in Progress has been valued at cost.
Financial Instruments
The Company was party to financial instrument arrangements as part of its every day operations, including instruments which have been recognised in these financial reports. Revenues and Expenses in relation to all financial instruments are recognised in the Statement of Financial Performance.
All financial instruments, including cash and bank, and accounts payable are recognised at their fair values. The Company has not entered into any off-balance sheet instruments. The following methods and assumptions were used to value each class of financial instrument.
Investments:
Investments are stated at the lower of cost and net realisable value.
Accounts Receivable:
Accounts receivable are stated at expected realisable value after providing for doubtful and uncollectible debts.
Fixed Assets
Land & Buildings
Land is valued at cost. Buildings are valued at cost less depreciation.
Vehicles, Plant, Furniture and Fittings
The value of motor vehicles, plant, furniture and fittings are at cost less depreciation.
Distribution Assets
Distribution assets are stated at Optimised Deprival Value (ODV) as valued by KPMG on 31 March 1999.
Depreciation
Depreciation is charged on a straight line basis so as to write off the cost or valuation of the fixed assets in their estimated residual value over their expected useful lives. The useful lives of major classes of assets have been estimated as follows:
| Buildings | 50 – 100 years | (1.2%) |
| Distribution Lines | 20 years | (5%) |
| Sub stations | 20 years | (5%) |
| Distribution Transformers | 20 years | (5%) |
| Load Control Equipment | 5 years | (20%) |
| Meters | 5 years | (20%) |
| Globo Distribution Assets | 20 years | (5%) |
| Motor Vehicles | 5 years | (20%) |
| Plant & Equipment | 5 years | (20%) |
| Tools | 5 years | (20%) |
| Office Furniture & Fittings | 5 – 15 years | (6.5%-20%) |
Taxation
The income tax expense charged against the profit for the period is the estimated liability in respect of that profit and is calculated after allowance for permanent differences and timing differences not expected to reverse in future periods. This is the partial basis for the calculation of deferred tax.
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VUW Te Waharoa —
NZ Gazette 1999, No 95
NZLII —
NZ Gazette 1999, No 95
✨ LLM interpretation of page content
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Notes to Financial Statements and Accounting Policies
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🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Inventories, Financial Instruments, Fixed Assets, Depreciation, Taxation