✨ Financial Statements Notes
NEW ZEALAND GAZETTE
No. 129
a) Basis of Consolidation
The consolidated financial statements include those of Powerco Limited and its subsidiaries, accounted for using the purchase method. All significant inter-company transactions and balances are eliminated on consolidation. In the parent company financial statements investments in subsidiaries are stated at cost.
b) Property, Plant and Equipment
All property, plant and equipment values are stated at cost, less accumulated depreciation.
c) Depreciation of Property, Plant and Equipment
Depreciation rates based on remaining useful life, for major classes of asset are:
| Asset Class | Useful Life |
|---|---|
| Land | Not Depreciated |
| Buildings | 100 years |
| Furniture and Fittings | 5 to 10 years |
| Office Equipment | 3 to 10 years |
| Motor Vehicles | 5 years |
| Network Systems | 10 to 60 years |
d) Properties Intended for Resale
Properties intended for resale are shown at the lower of cost or net current value.
e) Receivables
Accounts receivable are valued at expected realisable value, after providing for doubtful debts. All known bad debts have been written off during the period under review.
f) Income Tax
The group adopts the liability method of accounting for deferred taxation.
The taxation charge against the surplus of the period is the estimated liability in respect of that surplus using a proforma income tax rate of 33%. This is the partial basis for the calculation of deferred taxation.
Future taxation benefits attributable to timing differences or losses carried forward are recognised in the financial statements only where there is virtual certainty that the benefit of the timing differences will be realised or any losses utilised.
g) Inventory
Inventory is valued at the lower of historical cost and net realisable value. The weighted average method has been used to determine historical cost.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 129
Gazette.govt.nz —
NZ Gazette 2002, No 129
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Powerco Limited Notes to the Financial Statements
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