✨ Financial Statements and Accounting Policies
7 AUGUST
NEW ZEALAND GAZETTE
2119
(d) Depreciation
Fixed assets have been depreciated in order to write off cost less estimated residual value over their estimated useful life on the following basis:
| Distribution Assets | depreciated based on assessed residual life |
| Buildings (revalued) | 2% SL |
| Plant and Equipment | 20% DV |
| Motor Vehicles | 20% DV |
| Computer Equipment | 48% DV |
(e) Taxation
The income tax expense charged to the statement of financial performance includes both the current year’s provision and the income tax effects of timing differences calculated using the liability method. Tax effect accounting has been 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 recognised only if there is virtual certainty of realisation.
(f) Vested Assets
Vested assets from consumers are credited to the statement of financial performance.
(g) Receivables
Receivables are stated at their estimated realisable value. Bad debts are written off during the period in which they are identified.
(h) Financial Instruments
Pursuant to FRS 31: Disclosure of Information about Financial Instruments, the company estimates that in respect of the reported financial instruments, being cash, short-term investments and debtors, fair value is equivalent to the carrying amount as stated in the statement of financial position.
Credit Risk
The company places short term investments with only registered banks. The company has a credit policy which is used to manage this exposure to credit risk. As part of this policy, limits on the amount of surplus funds placed with any one banking institution have been set and approved by the Board of Directors.
Concentrations of Credit Risk
Network Tasman’s customers are major electricity retailers. The credit risk is not considered to be high. The group does not have any other significant concentrations of credit risk.
Interest Rate Risk
Short-term investments mature within the range of on call to 90 days. The interest rates on these investments range from 5.73% to 6.38%.
(i) Cash Flows
For the purpose of the statement of cash flows, cash includes cash on hand, deposits held at call with banks and investments in money market instruments.
(j) Employee Entitlements
A liability for annual leave and long service leave is accrued and recognised in the statement of financial position. The liability is equal to the present value of the estimated future cash flows as a result of employee services provided at balance date.
(k) Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in the prior year.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 87
Gazette.govt.nz —
NZ Gazette 2000, No 87
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Network Tasman Limited Information Disclosure
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