✨ Financial Accounting Policies
6 SEPTEMBER
NEW ZEALAND GAZETTE
3549
STATEMENT OF ACCOUNTING POLICIES (Continued)
Distribution Assets
Distribution assets are stated at Optimised Deprival Value (ODV) as valued by independent valuer, Bruce Gemmell of KPMG, Christchurch on 31 March 2001, plus additions at cost since that date and less depreciation. These valuations are conducted at least once every three years and in accordance with guidelines established by the Commerce Commission.
Depreciation
Depreciation of property, plant and equipment, other than freehold land, is calculated on a straight line basis so as to expense the cost of the assets, or the revalued amounts, to their residual values over their useful lives as follows:
Estimated useful lives
Buildings 50 - 100 years
Office and computer equipment 5 -15 years
Distribution system 40 years
Motor vehicles 5 years
Plant, equipment and tools 5 years
Employee Entitlements
Employee entitlements to salaries and wages, annual leave, long service leave and other benefits are accrued annually on an actual entitlement basis.
Investments
All investments are stated at cost.
Leases
Centralines leases its telephone equipment, photocopier and some of its computer equipment. Under the terms of the leases, all the risks and benefits of ownership effectively remain with the lessors. Lease payments are recognised as an expense in the periods the amounts are payable and a full disclosure of future commitments is provided in note 11.
Financial Instruments
Financial instruments carried on the statement of financial position include cash and bank balances, investments, receivables and trade creditors. These financial assets and financial liabilities are, generally, carried at their estimated fair values and, where appropriate, particular recognition methods adopted are disclosed in the individual policy statements associated with each item.
Statement of Cash Flows
The following are the definitions of the terms used in the statement of cash flows:
(a) Operating activities include all transactions and other events that are not investing or financing activities.
(b) Investing activities are those activities relating to the acquisition, holding and disposal of property, plant and equipment and of investments. Investments include securities not falling within the definition of cash.
(c) Financing activities are those activities that result in changes in the size and composition of the capital structure. This includes both equity and debt not falling within the definition of cash.
(d) Cash is considered to be cash on hand and current accounts in banks, net of bank overdrafts.
Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in the prior year.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 132
Gazette.govt.nz —
NZ Gazette 2002, No 132
✨ LLM interpretation of page content
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Financial Position Statement for Centralines Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Revenue, Tax, GST, Assets, Liabilities, Centralines Limited
- Bruce Gemmell, Independent valuer for distribution assets