✨ Accounting Policies Statement
STATEMENT OF ACCOUNTING POLICIES (Continued)
(d) Cash is considered to be cash on hand and current accounts in banks, net of bank overdrafts.
Changes in Accounting Policies
Dividends declared by Directors by a resolution after balance date have previously been treated as a liability at balance date. Financial Reporting Standard 5, which is now mandatory, prohibits this. Accordingly, the dividend declared by Directors on 28 May 2002 is disclosed as a post balance date event in Note 17. The implementation of this new policy has had the effect of increasing equity by $75 thousand and decreasing provision for dividend by the same amount.
The Company has changed its accounting policy for the valuation of land and buildings in order to comply with FRS-3, Property, Plant and Equipment. This standard came into effect for periods ending on or after 31 March 2002. It requires the Company to revalue its land and buildings at fair value which has been determined by reference to the highest and best use of those assets. The previous policy had been to determine the fair value of those items by reference to their existing use. There is no financial effect on these financial statements resulting from this change.
There have been no other changes in accounting policies and all policies have been applied on a basis consistent with those of the previous year.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 133
Gazette.govt.nz —
NZ Gazette 2002, No 133
✨ LLM interpretation of page content
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Scanpower Limited Statement of Accounting Policies
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Dividends, Financial Reporting Standard 5, Equity, Provision for Dividend, FRS-3, Property, Plant and Equipment, Valuation, Land and Buildings, Fair Value, Highest and Best Use