New Zealand Gazette – 2001 – No. 85

Page 2204

✨ Financial Statements Notes



HAWKE'S BAY NETWORK LIMITED – LINES BUSINESS

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2001

Any revaluation surplus arising on the revaluation of a class of fixed assets is transferred directly to the asset revaluation reserve. A revaluation deficit in excess of the asset revaluation reserve balance for the class of fixed assets is recognised in the Statement of Financial Performance in the period it arises. Revaluation surpluses which reverse previous revaluation deficits recognised in the Statement of Financial Performance are recognised as revenue in the Statement of Financial Performance.

When a fixed asset is disposed of, any gain or loss is recognised in the Statement of Financial Performance and is calculated as the difference between the sale price and the carrying value of the fixed asset.

b. Depreciation
Depreciation is provided on a straight line basis on all tangible fixed assets other than freehold land, at rates calculated to allocate the asset’s cost or valuation less any residual value, over their estimate useful lives.

Useful lives are:

  • Network assets 10-70 years
  • Transformers 20-60 years
  • Freehold Buildings 60-100 years
  • Motor Vehicles 5-10 years
  • Plant and Equipment 5-10 years
  • Office Furniture and Equipment 4-20 years

c. Other Investments
Other investments are stated at the lower of cost or net realisable value.

d. Receivables
Receivables are stated at their estimated realisable value.

e. Inventories
Inventories are stated at the lower of average cost and net realisable value.

f. Capital Work in Progress
Work in progress includes the cost of materials and other direct and indirect costs incurred as at balance date.

g. Income Tax
The Company adopts the liability method of accounting for deferred taxation.

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

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. The subsequent realisation of such income tax benefits is subject to the requirements of income tax legislation being met.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2001, No 85


Gazette.govt.nz — PDF NZ Gazette 2001, No 85




✨ LLM interpretation of page content

🏗️ Hawke's Bay Network Limited Financial Statements Disclosure (continued from previous page)

🏗️ Infrastructure & Public Works
Financial Statements, Electricity, Information Disclosure, Hawke's Bay Network Limited