✨ Financial Accounting Policies
Specific Accounting Policies
The following specific accounting policies, which materially affect the measurement of financial performance and the financial position, have been applied:
a) Basis of Consolidation
The consolidated financial statements include those of Powerco Limited and its non-trading subsidiaries, accounted for using the purchase method. All significant inter-company transactions and balances are eliminated on consolidation. In the parent company financial statements investments in subsidiaries are stated at cost.
b) Property, Plant and Equipment
All property, plant and equipment values are stated at cost.
c) Depreciation of Property, Plant and Equipment
Depreciation rates based on remaining useful life, for major classes of asset are:
| Asset Class | Depreciation Rate |
|---|---|
| Land | Not Depreciated |
| Buildings | 100 years |
| Furniture and Fittings | 5 to 10 years |
| Office Equipment | 3 to 10 years |
| Motor Vehicles | 5 years |
| Network Systems | 10 to 60 years |
d) Properties intended for Resale
Properties intended for resale are shown at the lower of cost or estimated realisable value.
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 group adopts the liability method of accounting for deferred taxation.
The taxation charge against the surplus of the period is the estimated liability in respect of that surplus after allowance for all the permanent differences and timing differences not expected to crystallise in the foreseeable future. This is the partial basis for the calculation of deferred taxation.
Future taxation benefits attributable to timing differences or losses carried forward are recognised in the financial statements only where there is virtual certainty that the benefit of the timing differences will be realised or any losses utilised.
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.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 108
Gazette.govt.nz —
NZ Gazette 2001, No 108
✨ LLM interpretation of page content
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Powerco Limited Gas Information Disclosure
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🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Amalgamation, Powerco Limited, Gas Information Disclosure, Companies Act 1993, Energy Companies Act 1992, Financial Reporting Act 1993, Gas (Information Disclosure) Regulations 1997