✨ Financial Statements Notes
2722
NEW ZEALAND GAZETTE
No. 109
HAWKE’S BAY NETWORK LIMITED – LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2000
When a fixed asset is disposed of, any gain or loss is recognised in the Statement of Financial Performance and is calculated as the difference between the sale price and the carrying value of the fixed asset.
The carrying value of assets (other than Land and Building should they be sold on a vacant basis), do not exceed their estimated recoverable value.
b. Depreciation
Depreciation is provided on a straight line basis on all tangible fixed assets other than freehold land, at rates calculated to allocate the asset’s cost or valuation less any residual value, over their estimate useful lives.
Useful lives are:
- Network assets 10-70 years
- Transformers 40-60 years
- Freehold Buildings 60-100 years
- Motor Vehicles 5-10 years
- Plant and Equipment 5-10 years
- Office Furniture and Equipment 4-20 years
c. Other Investments
Other investments are stated at the lower of cost or net realisable value.
d. Receivables
Receivables are stated at their estimated realisable value.
e. Inventories
Inventories are stated at the lower of average cost and net realisable value.
f. Work in Progress
Work in progress includes the cost of materials and other direct and indirect costs incurred as at balance date.
g. Income Tax
The Company adopts the liability method of accounting for deferred taxation.
The taxation charge against the surplus for the period is the estimated liability in respect of that surplus after allowance for all the permanent differences and timing differences not expected to reverse in the foreseeable future. This is the partial basis for the calculation of deferred tax.
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. The subsequent realisation of such income tax benefits is subject to the requirements of income tax legislation being met.
h. Financial Instruments
Financial instruments such as bank balances, bank investments, receivables, accounts payable and term debt are included in the accounts at their estimated fair value.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 109
Gazette.govt.nz —
NZ Gazette 2000, No 109
✨ LLM interpretation of page content
💰
Notes to and forming part of the financial statements for Hawke’s Bay Network Limited
(continued from previous page)
💰 Finance & RevenueFinancial statements, Accounting policies, Fixed assets, Valuation, Depreciation, Optimised Deprival Value, Hawke’s Bay Network Limited