New Zealand Gazette – 2000 – No. 146

Page 3801

✨ Financial Statements Notes



27 OCTOBER NEW ZEALAND GAZETTE 3801

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Eastland Network Limited

Notes to the financial statements (continued)

For the year ended 31 March 2000

1) Statement of accounting policies (continued)

Fixed Assets (continued)

Depreciation

Depreciation is calculated on a straight line basis to allocate the cost or revalued amount of an asset, less any residual value, over its useful life.

Major depreciation periods are:

  • Buildings 40 – 100 years
  • Distribution system 10 – 50 years
  • Motor Vehicles 5 – 10 years
  • Plant & Equipment 5 – 10 years

(B) Receivables

Receivables are stated at estimated realisable value after providing against debts where collection is doubtful.

(C) Taxation

The income tax expense charged to the statement of financial performance includes both the current year's provision and the income tax effect of timing differences calculated using the liability method.

Tax effect accounting is applied on a comprehensive basis to all timing differences. 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.

(D) Financial Instruments

The Company is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, investments, accounts receivable, accounts payable and term borrowings. All financial instruments are recognised in the statement of financial position and all revenues in relation to financial instruments are recognised in the statement of financial performance.

Except for those items covered by a separate accounting policy, all financial instruments are shown at their fair value.

(E) Employee Entitlements

A liability for annual leave and long service leave is accrued and recognised in the statement of financial position. The liability is calculated on an actual entitlement basis.

(F) Changes in Accounting Policies

There have been no changes in accounting policies. All Policies have been applied on bases consistent with those in the prior year.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2000, No 146


Gazette.govt.nz — PDF NZ Gazette 2000, No 146




✨ LLM interpretation of page content

🏭 Statement of cash flows by Eastland Network Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial statements, Cash flows, Operating activities, Investing activities, Financing activities, Eastland Network Limited