✨ Financial Accounting Policies
28 JUNE NEW ZEALAND GAZETTE 1613
SPECIFIC ACCOUNTING POLICIES (continued)
On 1 April 1999, the Lines Business purchased the network related assets of Central Electric Ltd. Central network assets are carried at cost less depreciation.
Furniture and fittings, plant and equipment, and motor vehicles are valued at market value as at 31 December 1992 and have been adjusted by accumulated depreciation, subsequent additions at cost and disposals at book value.
(g) Distinction Between Capital and Revenue Expenditure
Capital expenditure is defined as all expenditure on the creation of a new asset, and any expenditure which results in a significant improvement to the original function of an existing asset.
Revenue expenditure is defined as expenditure which maintains an asset in working condition and expenditure incurred in maintaining and operating the Company.
(h) Depreciation
Fixed assets are depreciated on the basis of valuation or cost price less estimated residual value on a straight line basis over their estimated useful life.
Rates used are:
Buildings 1 - 2.5%
Plant and equipment 2.5 - 15%
Network assets 1 - 5%
Furniture and fittings 10%
Computer equipment 20%(i) Taxation
The Company is subject to taxation under the Income Tax Act 1976. Taxation is provided in the financial statements on the basis of the estimated taxation payable, after taking advantage of all available deductions and concessions.
Tax effect accounting has been applied on a partial basis to timing differences. A deferred tax liability arising from timing differences is only recognised if there is virtual certainty of realisation.
(j) Goods and Services Tax
These accounts are prepared exclusive of GST except for accounts receivable and accounts payable which are GST inclusive.
(k) Financial Instruments
The Lines Business is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, short-term deposits, debtors, creditors and loans. All financial instruments are recognised in the Statement of Financial Position. All revenues and expenses in relation to financial instruments are recognised in the Statement of Financial Performance.
(l) Comparative Figures
Comparative figures for the 1999 and previous years are in respect of the Dunedin network only.
Figures for the 2000 financial year are in respect of the combined Dunedin and Central networks.
(m) Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 71
Gazette.govt.nz —
NZ Gazette 2000, No 71
✨ LLM interpretation of page content
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Disclosure of Financial Statements Under Regulation 6 of the Electricity (Information Disclosure) Regulations 1999
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Accounting Policies, Revenue, Expenditure, Assets, Liabilities, Electricity, Disclosure