✨ Accounting Policies
3044 NEW ZEALAND GAZETTE No. 118
d) Income Taxation
The income taxation expense charged against the operating surplus for the year is the estimated liability in respect of that operating surplus and is calculated after allowance for permanent differences. Deferred Taxation is calculated on the comprehensive basis using the liability method (see Note 6). Future tax benefits attributable to tax losses or timing differences are only realised when there is virtual certainty of realisation.
e) Valuation of Assets
Land is stated at cost, all other fixed assets (except distribution assets) are stated at cost less accumulated depreciation.
All distribution system assets were revalued on an Optimised Deprival Value (ODV) basis by PriceWaterhouseCoopers as at 31 March 2001. All additions to the distribution network are recorded at cost. Distribution system assets will be revalued at least once every three years.
f) Accounts Receivable
Receivables are shown at net realisable value. All known bad debts have been written off during the year.
g) Inventories
Inventories are valued at the lower of cost, determined on a weighted average cost basis, and net realisable value.
h) Goods and Services Tax (GST)
These financial statements have been prepared exclusive of GST with the exception of accounts receivable and accounts payable which are shown inclusive of GST.
i) Allocation Methodologies
Allocation of costs, revenues, assets and liabilities have been allocated in accordance with the Electricity (Information Disclosure) Regulations 1999.
Changes in Accounting Policies
There have been no material changes in accounting policies. All accounting policies have been applied on bases consistent with those used in the previous year.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 118
Gazette.govt.nz —
NZ Gazette 2001, No 118
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Accounting Policies for Financial Statements
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💰 Finance & RevenueIncome Taxation, Deferred Taxation, Valuation of Assets, Accounts Receivable, Inventories, GST, Allocation Methodologies