✨ Financial Statements Notes
Notes to the financial statements
For the year ended 31 March 2001
1) Statement of accounting policies
Basis of Preparation
Eastland Network Ltd is registered under the Companies Act 1993 and is a reporting entity for purposes of the Financial Reporting Act 1993.
The financial statements are those of the Line Business Activities only of Eastland Network Ltd and have been prepared in accordance with the Electricity (Information Disclosure) Regulations 1999 and only for that purpose.
Measurement base
The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on a historical cost basis are followed, with the exception that certain property has been revalued.
Specific accounting policies
The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied.
(A) Fixed Assets
Owned Assets
Fixed assets are initially stated at cost and depreciated as outlined below. Where appropriate, the cost of fixed assets includes site preparation costs, installation costs, and the cost of obtaining resource consents.
Leased Assets
Leases in terms of which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Assets acquired by way of finance lease are stated at an amount equal to the present value of the future minimum lease payments, and are depreciated as outlined below.
Revaluations
Land and buildings are stated at valuation as determined on a cyclical basis not exceeding three years by an independent valuer. The basis of valuation is market value less the estimated costs of disposal, on an existing use basis. Any surplus on revaluation of a class of land and buildings is transferred directly to equity unless it offsets a previous decrease in value recognised in the statement of financial performance, in which case it is recognised in the statement of financial performance. A decrease in value rating to the class of land and buildings is recognised in the statement of financial performance where it exceeds the surplus previously transferred to equity.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 115
Gazette.govt.nz —
NZ Gazette 2001, No 115
✨ LLM interpretation of page content
💰
Notes to the financial statements
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Fixed Assets, Leased Assets, Revaluations, Financial Reporting