✨ Accounting Policies
2486 NEW ZEALAND GAZETTE No. 99
The main bases are periods not exceeding:
Leasehold land and buildings 14 years
Buildings 20 years
Distribution Network and equipment 80 years
Motor vehicles 5 years
Fixtures and fittings 5 years
(d) Taxation
The income tax expense charged against the surplus for the year is the estimated liability in respect of that surplus and is calculated after allowance for permanent differences and timing differences which are not expected to reverse in the future periods. This is the partial basis for the calculation of deferred tax. Tax effect accounting is applied on a partial basis using the liability method. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.
(e) Valuation of inventories
Inventories are valued at the lower of cost (FIFO or weighted average) or net realisable value on a basis consistent with the previous year. An allowance for obsolescence has been assessed on inventories where appropriate.
Internal sales
Due to the separation of the distribution business from the other contestable business activities, internal transactions between business activities have not been eliminated.
Changes in accounting policies
There have been no changes in accounting policies. The 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 99
Gazette.govt.nz —
NZ Gazette 2000, No 99
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Statement of Accounting Policies
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