New Zealand Gazette – 2001 – No. 164

Page 4008

✨ Financial Accounting Policies



Inventories

Inventories are stated at the lower of cost and net realisable value. Costs are assigned to inventories on hand at balance date using weighted average cost.

Investments

Investments are stated at cost price.

Fixed Assets

The distribution network is valued at optimised deprival value, valued at 30 June 2000 by James Coe, B.Sc. B.E (Electrical), M.B.A, Registered Engineer, and Member of IPENZ - Network Manager and reviewed in accordance with SSAP-28 by Bruce Wattie, CA, BCA, Partner - Financial Advisory Services, of PricewaterhouseCoopers, and Guenter Wabnitz, Dipl.Ing (German), VDI, MIPENZ, Senior Consultant - Worley Consultants Limited.

All other fixed assets are recorded at cost.

Depreciation

Depreciation is provided on a straight line basis on all tangible fixed assets, at rates calculated to allocate the asset's cost, or optimised deprival value, less estimated residual life, over their estimated useful lives.

Major depreciation rates are:

  • Mains & Services: 1-10% S.L
  • Meters & Customer Station Rebuilds: 1-10% S.L
  • Vehicles, Plant, Office Equipment & Furniture and Fittings: 20% S.L
  • Computer Hardware & Software: 33% S.L
  • Leasehold Improvements: 10-15% S.L

Financial Instruments

The Company is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, short term deposits, debtors, creditors and loans. All financial instruments are recognised in the statement of financial position and all revenues and expenses in relation to financial instruments are recognised in the statement of financial performance.

Employee Entitlements

Provision is made in respect of the Company's liability for annual leave and long service leave. Annual leave and long service leave have been calculated on an accrual entitlement basis, at current rates of pay.

Income Tax

The taxation charge against the profit for the period is the estimated liability in respect of that profit after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. This is the partial basis for the calculation of deferred taxation.

The Company follows the liability method of accounting for deferred taxation.

Future tax benefits attributable to tax losses or timing differences are only recognised when there is virtual certainty of realisation.

Changes in Accounting Policies

There have been no changes in accounting policy. All policies have been applied on bases consistent with those used in the previous period.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2001, No 164


Gazette.govt.nz — PDF NZ Gazette 2001, No 164




✨ LLM interpretation of page content

🏭 Wanganui Gas Limited Financial Statements Notes (continued from previous page)

🏭 Trade, Customs & Industry
Financial statements, accounting policies, gas distribution, retail, Wanganui Gas Limited
  • James Coe, Network Manager, valuation of distribution network
  • Bruce Wattie, Partner - Financial Advisory Services, review of valuation
  • Guenter Wabnitz, Senior Consultant, review of valuation