✨ Electricity Information Disclosure Accounting Policies
NEW ZEALAND GAZETTE
No. 121
3232
(e) Depreciation
Property, Plant and Equipment is depreciated on the basis of valuation cost price less estimated residual value over the period of their estimated useful life.
Rates used are:
| Buildings | 10% SL - 4% DV |
| Furniture, Fittings & EDP Equipment | 10% DV - 60% DV |
| Motor Vehicles | 20% DV - 31.2% DV |
| Network Assets | 1% SL - 39.6% DV |
(f) Receivables
Receivables are stated in their estimated realisable value after writing off bad debts for the period and making allowance for doubtful debts. All known losses are written off in the period in which it becomes apparent the debts are not collectable.
(g) Inventories
Inventories are stated at the lower of cost or net realisable value on a weighted average cost price.
(h) Income Tax
The income tax expense charged against the profit for the year is the estimated liability in respect of that profit and is calculated after allowance 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.
The Company uses the liability method of accounting for deferred taxation and applies this on a partial basis.
Future tax benefits attributable to tax losses or timing differences are only recognised where there is virtual certainty of realisation.
(i) Work In Progress
The cost of work in progress includes the cost of direct material and direct labour used in putting replacement and new systems in their present location and condition.
(j) Goods And Services Tax
These accounts have been prepared on a GST exclusive basis with the exception of accounts receivable and accounts payable which are GST inclusive.
(k) 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.
(l) 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.
Changes in Accounting Policies
The Company has changed the method of accounting for deferred taxation from the comprehensive method to the partial method as it is considered unlikely that the majority of timing differences will reverse in future, and accordingly an income tax liability is not expected to crystallise. The effect of this change is a write back to the taxation expense of $554,000 for deferred taxation liability provided in previous years, and reversal of a deferred taxation liability of $12,179,000 relating to the revaluation of fixed assets at 31 March 2001.
There have been no other changes in accounting policies during the year ended 31 March 2002.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 121
Gazette.govt.nz —
NZ Gazette 2002, No 121
✨ LLM interpretation of page content
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Electricity Information Disclosure for The Power Company Limited
(continued from previous page)
🏭 Trade, Customs & Industry7 August 2002
Electricity, Information Disclosure, Regulations, The Power Company Limited, Financial Statements, Accounting Policies, Reporting Entity, Measurement Base, Consolidation, Avoidable Cost Allocation, Property, Plant, Equipment, Depreciation, Receivables, Inventories, Income Tax, Work In Progress, Goods And Services Tax, Operating Leases, Employee Entitlements, Changes in Accounting Policies