New Zealand Gazette – 2000 – No. 118

Page 3001

✨ Financial Statements Notes



1 SEPTEMBER

NEW ZEALAND GAZETTE

3001

THE LINES COMPANY LIMITED

Lines Business Activity

Notes to the Financial Statements

For the Year Ended 31st March 2000

(d) Depreciation

Depreciation is provided on either a straight line or a diminishing value basis on all fixed assets other than freehold land and perpetually renewable distribution assets, at rates calculated to allocate the assets’ cost or valuation less estimated residual value, over their estimated useful life. Assets purchased post 1 April 1999 have been depreciated on a straight line basis.

Major depreciation rates and methods:

Category Depreciation Rate Method
Buildings 40-100 years Straight Line
Motor Vehicles, plant & equipment 10% to 50% Diminishing Value or Straight Line
Network plant & equipment 20 - 50 years Straight Line
Network Lines Are not depreciated
Land Is not depreciated

Infrastructural accounting has been adopted for those parts of the distribution asset that are perpetually renewed. This means that a deduction is made against current expenditure of an amount equivalent to the average annual amount that will need to be expended on those assets over the next twenty years to maintain their current condition. Expenditure on renewals is capitalised.

Components that are separately identifiable and have a finite life e.g. 33kV substation transformers, are depreciated.

(e) Inventory

Stocks are stated at the lower of cost, determined on an average cost basis, or net realisable value.

(f) Goods & Services Tax

All amounts in the financial statements have been shown exclusive of Goods and Services Tax, with the exception of Accounts Payable and Accounts Receivable which are shown inclusive of Goods and Services Tax.

(g) Investments

Short term deposits and shares are stated at the lower of cost or estimated realisable value.

(h) Taxation

Income tax expense is recognised on the operating surplus before taxation adjusted for permanent differences between taxable and accounting income. The tax effect of all timing differences, expected to reverse in the foreseeable future, that arise from items being brought to account in different periods for income tax and accounting purposes, is recognised in the Statement of Financial Position as a future tax benefit or a provision for deferred tax. The future tax benefit or provision for deferred tax is stated at the income tax rate prevailing at balance date.

Future tax benefits are not recognised unless realisation of the asset is virtually certain.

The Company uses the liability method of accounting for deferred taxation at the income tax rate prevailing at balance date and applies this on a partial basis.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2000, No 118


Gazette.govt.nz — PDF NZ Gazette 2000, No 118




✨ LLM interpretation of page content

🏭 Statement of Cashflows for The Lines Company Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statement, Cashflows, Operating Activities, Investing Activities, Financing Activities, The Lines Company Limited