✨ Financial Statements
NEW ZEALAND GAZETTE
No. 96
Depreciation
All assets, except freehold land and roads are depreciated over their estimated useful lives on a straight line or diminishing value basis as considered appropriate, commencing from the time the assets are held ready for use.
The Economic life ranges for the various classes of assets are:
| Buildings | 39 to 48 years |
| Network | 16 to 25 years |
| Tools, Plant and Equipment | 5 years |
| Motor Vehicles | 5 years |
| Computer Equipment | 5 years |
(e) Income Tax
The taxation charge against the profit for the year includes both the income tax payable on assessable income in the period and the income tax effects of timing differences using the liability method.
Tax effect accounting is applied on a comprehensive basis to all timing differences.
Future tax benefits attributable to tax losses or timing differences are only recognised when there is virtual certainty of realisation.
(f) Goods and Services Tax
All amounts in the financial statements have been shown exclusive of goods and services tax, with the exception of accounts receivable and accounts payable, which are shown inclusive of goods and services tax.
(g) Operating Leases
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Payments under these leases are recognised as expenses in the periods in which they are incurred.
(h) Employee Entitlements
Provision is made in respect of the Company’s liability for annual and long service leave. Leave has been calculated on an actual entitlement basis at current rates of pay.
(i) Statement of Cash Flows
The Statement of Cash Flows is prepared exclusive of goods and services tax, which is consistent with the method used in the Statement of Financial Performance.
Definitions of the terms used in the statement of cash flows:
“Cash” includes coins and notes, demand deposits and other highly liquid investments readily convertible into cash and includes at call borrowings such as bank overdrafts, used by the Company and the Group as part of their day-to-day cash management.
“Investing activities” are those activities relating to changes in the equity and debt capital structure of the Company and Group and those activities relating to the cost of servicing the Company’s and the Group’s equity capital.
“Operating activities” include all transactions and other events that are not investing or financing activities.
CHANGES IN ACCOUNTING POLICIES
There were no changes in accounting policies during the year ended 31 March 2001.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 96
Gazette.govt.nz —
NZ Gazette 2001, No 96
✨ LLM interpretation of page content
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Otago Power Limited Financial Statements
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🏭 Trade, Customs & Industry9 August 2001
Financial Statements, Electricity, Information Disclosure, Otago Power Limited