✨ Financial Accounting Policies
Goods and Services Tax (GST)
The statement of financial performance and statement of cash flows have been prepared so that all components are stated exclusively of GST. All items in the statement of financial position are stated net of GST, with the exception of receivables and payables, which include GST invoiced.
Accounts Receivable
Accounts receivable are stated at expected net realisable value after providing against debts where collection is doubtful.
Employee Entitlements
Employee entitlements to salaries and wages, annual leave, long service leave and other benefits are recognised when they accrue to employees.
Fixed Assets
Initial Recording
The cost of purchased fixed assets is the value of the consideration given to acquire the assets and the value of other directly attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended service.
The cost of self-constructed assets includes the cost of all materials used in construction, direct labour and an appropriate proportion of variable and fixed overheads. Costs cease to be capitalised as soon as the asset is ready for productive use and do not include any inefficiency costs.
Change in Accounting Policy
In previous years Distribution system assets have been recorded at cost. These assets have been revalued for the first time to Depreciated Replacement Cost as at 31 March 2001. The valuation was undertaken by Meritec Limited, Valuers. This has resulted in an increase in their value and creation of a revaluation reserve. This change has not affected the profit result for the year.
Impairment
Annually, the directors assess the carrying value of major assets. Where the estimated recoverable amount of the asset is less than its carrying amount, the asset is written down. The impairment, if any, is recognised in the statement of financial performance.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 89
Gazette.govt.nz —
NZ Gazette 2001, No 89
✨ LLM interpretation of page content
💰 Goods and Services Tax (GST) Accounting
💰 Finance & RevenueGST, Financial Performance, Cash Flows, Financial Position
💰 Accounts Receivable Policy
💰 Finance & RevenueAccounts Receivable, Net Realisable Value, Debt Collection
💰 Employee Entitlements Recognition
💰 Finance & RevenueEmployee Entitlements, Salaries, Wages, Annual Leave, Long Service Leave
💰 Fixed Assets Accounting Policy
💰 Finance & RevenueFixed Assets, Purchased Assets, Self-Constructed Assets, Capitalisation
💰 Change in Accounting Policy for Distribution System Assets
💰 Finance & RevenueAccounting Policy, Distribution System Assets, Revaluation, Depreciated Replacement Cost
- Meritec Limited, Valuers
💰 Impairment of Assets Policy
💰 Finance & RevenueImpairment, Asset Carrying Value, Recoverable Amount, Financial Performance