✨ Financial Accounting Policies
18 AUGUST NEW ZEALAND GAZETTE 2353
c) Fixed Assets
The capital value of fixed assets is the value at either Optimised Depreciated Replacement Cost (ODRC), economic value or cost.
Valuations of the company electricity and gas network assets were completed by KPMG Independent Consultants. These ODRC valuations are recorded in the financial statements at the date of valuation being 31 March 2000.
d) Depreciation of Fixed Assets
Depreciation rates for major classes of asset are:
Land Not Depreciated
Buildings 1% SL
Furniture and Fittings 10% to 20% DV
Office Equipment 10% to 33% DV
Motor Vehicles 20% DV
Network Systems 1.8% to 2% SL and 5% to 14.4% DV
e) Receivables
Accounts receivable are valued at expected realisable value, after providing for doubtful debts. All known bad debts have been written off during the period under review.
f) Income Tax
The income tax expense charged to the Statement of Financial Performance includes both the current year's expense and the income tax effect of timing differences using the liability method on a comprehensive basis.
g) Inventory
Inventory is valued at the lower of historical cost and net realisable value. The weighted average method has been used to determine historical cost.
h) Investments
Investments are valued at the lower of cost and net realisable value.
i) Revenue Recognition
Revenue from the sale of energy and value added services is recognised when invoices are issued plus an accrual is made for sales at balance date.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 94
Gazette.govt.nz —
NZ Gazette 2000, No 94
✨ LLM interpretation of page content
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Notes to the Financial Statements for Powerco Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Powerco Limited, Electricity, Gas, Fixed Assets, Depreciation, Receivables, Income Tax, Inventory, Investments, Revenue Recognition