✨ Financial Statements Notes
Notes to the financial statements (continued)
For the year ended 31 March 2001
Disposal of Fixed Assets
Where a fixed asset is disposed of, the profit or loss recognised in the statement of financial performance is calculated as the difference between the sale price and the carrying value of the fixed asset.
Depreciation
Depreciation is calculated on a straight line basis to allocate the cost or revalued amount of an asset, less any residual value, over its useful life.
Major depreciation periods are:
| Buildings | 40 – 100 years |
| Distribution system | 10 – 50 years |
| Motor Vehicles | 5 – 10 years |
| Plant & Equipment | 5 – 10 years |
(B) Receivables
Receivables are stated at estimated realisable value after providing against debts where collection is doubtful.
(C) Taxation
The income tax expense charged to the statement of financial performance includes both the current year’s provision and the income tax effect of timing differences calculated using the liability method.
Tax effect accounting is applied on a comprehensive basis to all timing differences. 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.
(D) Financial instruments
The Company is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, investments, accounts receivable, accounts payable and term borrowings. All financial instruments are recognised in the statement of financial position and all revenues in relation to financial instruments are recognised in the statement of financial performance.
Except for those items covered by a separate accounting policy, all financial instruments are shown at their fair value.
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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
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Notes to the financial statements
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Fixed Assets, Disposal, Depreciation, Receivables, Taxation, Financial Instruments