✨ Accounting Policies
21 SEPTEMBER NEW ZEALAND GAZETTE 3309
STATEMENT OF ACCOUNTING POLICIES (Continued)
Fixed Assets
All fixed assets are initially recorded at cost. Freehold land and buildings are subsequently revalued to net current value by an independent valuer. Fixed assets within these classes are revalued on a cyclical basis. The revaluations are conducted on a systematic basis so that each individual asset is revalued every three years.
Depreciation
Depreciation of fixed assets, other than freehold land, is calculated on a straight line basis so as to expense the cost of the assets, or the revalued amounts, to their residual values over their useful lives.
Major depreciation periods are:
Buildings - 50 years
Computer Equipment - 3 to 5 years
Distribution System - 33 to 35 years
Motor Vehicles - 6 to 10 years
Plant and Equipment - 10 years
Financial Instruments
Financial instruments carried on the statement of financial position include cash and bank balances, investments, receivables and trade creditors. These financial assets and financial liabilities are, generally, carried at their estimated fair value and, where appropriate, particular recognition methods adopted are disclosed in the individual policy statements associated with each item.
The company does not normally require deposits from customers except where there has previously been non-payment of outstanding accounts. No other form of security or collateral is required to support financial instruments with credit risk.
Statement of Cash Flows
The following are the definitions of the terms used in the statement of cash flows:
(a) Operating activities include all transactions and other events that are not investing or financing activities.
(b) Investing activities are those activities relating to the acquisition, holding and disposal of property, plant and equipment and of investments. Investments include securities not falling within the definition of cash.
(c) Financing activities are those activities that result in changes in the size and composition of the capital structure. This includes both equity and debt not falling within the definition of cash. Dividends paid in relation to the capital structure are included in financing activities.
(d) Cash is considered to be cash on hand and current accounts in banks, net of bank overdrafts.
Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in the prior year.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 129
Gazette.govt.nz —
NZ Gazette 2001, No 129
✨ LLM interpretation of page content
🏭
Scanpower Limited Accounting Policies for Lines Business
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Electricity Regulations, Scanpower Limited