✨ Financial Disclosure Continuation
29 AUGUST
NEW ZEALAND GAZETTE
2773
h) Investments
Investments are valued at the lower of cost and net realisable value.
i) Revenue Recognition
Revenue from the sale of distribution and value-added services is recognised when services are provided.
j) Contributions for Subdivisions/Uneconomic Lines
Contributions received from customers and grants towards the cost of reticulating new subdivisions are set-off against capital expenditure while contributions received, by way of “line rental in advance”, for the construction of uneconomic lines are included in the determination of operating surplus before taxation.
k) Leases
Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased items, are included in the determination of operating surplus before taxation in equal instalments over the lease term.
l) Financial Instruments
The company has various financial instruments with off-balance sheet risk for the primary purpose of reducing its exposure to fluctuations in interest rates. While these financial instruments are subject to risk that market rates may change subsequent to acquisition, such changes would generally be offset by opposite effects on the items being hedged.
For interest rate swap agreements entered into in connection with the management of interest rate exposure, the differential to be paid or received is accrued as interest rates change and is recognised as a component of interest income/expense over the life of the agreement.
m) Goodwill
The excess of cost over the fair value of the net assets acquired is recognised as goodwill, and is amortised to the Statement of Financial Performance over the expected period of the benefit.
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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
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Powerco Limited Gas Information Disclosure
(continued from previous page)
🏭 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, Investments, Revenue Recognition, Subdivisions, Uneconomic Lines, Leases, Financial Instruments, Goodwill