✨ Financial Statements
Depreciation
Fixed assets have been depreciated, so as to write off cost less estimated residual value over their estimated useful lives, on the following basis:
Distribution System
- 1.4% to 2.2% (45 to 70 years) straight line (SL) for lines, cables & zone substations
- 2.2% to 2.9% (35 to 45 years) SL for switchgear, distribution transformers, distribution substations, service connection equipment and most other distribution equipment other than voltage regulators (which are depreciated at 1.8%, 55 years SL)
Buildings
- 2% SL for majority of buildings (some at 1% SL)
Plant & Equipment
- 40% DV for computer hardware and software
- 20% and 25% DV for other items
Motor Vehicles
- 20% and 25% DV for majority of vehicles
Estimated useful lives of Distribution System fixed assets were reviewed in conjunction with their revaluation to Optimised Deprival Value on 31 March 2001. As a consequence estimated useful lives have been revised from 1 April 2001 and now correspond to those specified in the fourth edition of the Handbook for Optimised Deprival Valuation of System Fixed Assets of Electricity Line Businesses issued by the Chief Executive of the Ministry of Economic Development in October 2000.
Taxation
The tax expense recognised for the year is based on the accounting surplus, adjusted for permanent differences between accounting and tax rules, and timing differences between accounting and tax rules that are not expected to crystallise in future periods. This is the partial basis for the calculation of deferred tax under the liability method.
A deferred tax asset, or the effect of losses carried forward that exceed the deferred tax liability, is recognised in the financial statements only where there is virtual certainty that the benefit of the timing differences, or losses, will be utilised.
Statement of Cash Flows
The following are the definitions of the terms used in the statement of cash flows:
a) Cash is considered to be cash on hand, current accounts in banks net of bank overdrafts and short term deposits with banks.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 104
Gazette.govt.nz —
NZ Gazette 2002, No 104
✨ LLM interpretation of page content
🏭
Counties Power Limited Statement of Accounting Policies
(continued from previous page)
🏭 Trade, Customs & Industry2 August 2002
Electricity, Financial Statements, Accounting Policies, Depreciation, Taxation, Cash Flows