✨ Accounting Policies
NEW ZEALAND GAZETTE
No. 106
(e) Depreciation
Fixed assets are depreciated on the basis of valuation cost price less estimated residual value over the period of their estimated useful life.
Rates used are:
| Buildings | 1% SL - 4% DV |
| Furniture, Fittings & EDP Equipment | 10% DV - 50% DV |
| Motor Vehicles | 20% DV - 25% DV |
| Network Assets | 1% SL - 22% DV |
(f) Receivables
Receivables are stated in 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 in respect of that profit and is calculated after allowance for permanent differences.
The Company uses the liability method of accounting for deferred taxation and applies this on a comprehensive basis.
Future tax benefits attributable to tax losses or timing differences are only recognised where there is virtual certainty of realisation.
(i) Work In Progress
The cost of work in progress includes the cost of direct material and direct labour used in putting replacement and new systems 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 accounts receivable and accounts payable which are GST inclusive.
Changes in Accounting Policies
Network system assets have been revalued at 31 March 2001. The effect of the revaluation has been to increase the value of the assets by $133,599,000. Of the revaluation $121,420,000 has been credited to the revaluation reserve and the balance of $12,179,000 credited to deferred tax.
There have been no other changes in accounting policies. The policies have been applied on a basis consistent with those used in previous years.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 106
Gazette.govt.nz —
NZ Gazette 2001, No 106
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