✨ Financial Statements
1234 NEW ZEALAND GAZETTE No. 57
TRANSALTA NEW ZEALAND LIMITED
Notes to and forming part of the Financial Statements (Continued)
For the Year Ended 31 March 1999
c) Accounts Receivable
Accounts receivable are stated at their estimated net realisable value.
d) Inventories
Inventories are valued at the lower of cost (determined on a weighted average basis) and net realisable value. Allowance is made for damaged and obsolete inventory.
e) Other Investments
Marketable securities and investments held for resale are stated at market value. Other investments are stated at cost with due allowance for any permanent reduction in value.
f) Taxation
Income tax expense is calculated for on the comprehensive basis using the liability method. Deferred tax assets are recognised only to the extent that there is virtual certainty of recovery.
g) Operating Lease Payments
Operating lease payments are expensed in the period in which they are incurred.
h) Interest Capitalised During Construction
Interest expense related to fixed assets under construction is included in the capital cost of the related asset.
i) Deferred Costs
Costs incurred by the Company to develop potential investments are deferred until an investment has been completed, at which time the costs are included with the investment. When it has been determined that an investment will not proceed, the related development costs are included in operating expenses.
Financing costs are amortised to earnings over the remaining life of the relevant lending facility.
j) Financial Instruments
The Company has entered into various financial instruments with off-balance sheet risk for the primary purpose of managing its exposure to fluctuations in interest rates and foreign currency exchange rates. While these financial instruments are subject to risk that market rates may change subsequent to acquisition, such changes would generally be offset by opposite effects on the items being hedged. These instruments are designated as, and are considered effective as, hedges. Any realised gains and losses on interest rate hedges are recognised as a component of interest expense in the statement of financial performance over the life of the hedge. Gains and losses on foreign exchange contracts are recognised as a component of the related transaction in the period the transaction is completed.
k) Changes in Accounting Policies
The basis accounting for deferred income tax has changed from the partial to the comprehensive liability method. This change has an immaterial effect due to the disposal of network assets. There have been no other changes in accounting policies during the period.
The information disclosed in the 1999 Information Disclosure package issued by TransAlta New Zealand Limited has been prepared solely for the purposes of the Gas (Information Disclosure) Regulations 1997.
The information should not be used for any other purpose than that intended under the regulations.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 57
Gazette.govt.nz —
NZ Gazette 2000, No 57
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Notes to Financial Statements for TransAlta New Zealand Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Gas (Information Disclosure) Regulations, TransAlta New Zealand Limited