✨ Financial Statements Notes
1844 NEW ZEALAND GAZETTE No. 77
(c) Fixed Assets
At 31 March 2000, Network Assets are recorded at 31 March, 1998 certified optimised deprival valuation which has been adjusted to include additions and disposals (at ODV valuations) during the intervening period. Depreciation on network assets is calculated on a straight line basis while other assets are shown at depreciated cost.
(d) 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 the service performance and operation of the Company.
(e) Depreciation
Depreciation has been written off network assets on a straight line basis according to the lives prescribed by the Electricity Information Disclosure Handbook. Other assets are depreciated on a straight line basis.
(f) Receivables:
Receivables are stated at their estimated realisable value.
(g) Inventories:
Inventories are stated at the lower of cost at weighted average cost price and net realisable value.
(h) Income Tax:
The income tax expense charged against the profit for the year is the estimated liability calculated at 33 cents in the dollar in respect of that profit.
(i) Work in Progress:
Work in Progress reflects progress payments made for direct labour and materials used in putting replacement and new network assets in their present location and condition.
(j) Goods and Services Tax:
These Accounts have been prepared on a GST exclusive basis with the exception of Sundry Debtors and Creditors which are GST inclusive.
CHANGES IN ACCOUNTING POLICIES
There have been no changes in accounting policies. All policies having been consistently applied during the year.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 77
Gazette.govt.nz —
NZ Gazette 2000, No 77
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Notes to Financial Statements
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💰 Finance & RevenueFinancial Statements, Accounting Policies, Fixed Assets, Capital Expenditure, Revenue Expenditure, Depreciation, Receivables, Inventories, Income Tax, Work in Progress, Goods and Services Tax