✨ Financial Statements Continuation
24 JUNE
NEW ZEALAND GAZETTE
1853
New assets purchased from 1 April 2001 are assessed based on the standard useful lives as contained in the Handbook for Optimised Deprival Valuation of System Fixed Assets of Electricity Line Businesses (4th edition) as issued by the Ministry of Economic Development and dated October 2000.
Pole structures, which have a physical life well in excess of the assessed residual life, have been re-assessed by the company’s qualified engineers.
(c) Taxation
The income tax expense charged to the statement of financial performance includes both the current year’s provision and the income tax effects of timing differences calculated using the liability method.
Tax effect accounting has been applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is recognised only if there is virtual certainty of realisation.
(d) Vested assets
Vested assets from consumers are credited to the statement of financial performance.
(e) Receivables
Receivables are stated at their estimated net realisable value. Bad debts are written off during the period in which they are identified.
(f) Financial instruments
The company estimates that in respect of the reported financial instruments, being cash, short term investments and debtors, fair value is equivalent to the carrying amount as stated in the statement of financial position.
Credit risk
The company places short term investments with only registered banks. The company has a credit policy which is used to manage this exposure to credit risk. As part of this policy, limits on the amount of surplus funds placed with any one banking institution have been set and approved by the board of directors.
Concentrations of credit risk
Network Tasman’s customers are electricity retailers. The credit risk is not considered to be high. The company does not have any other significant concentrations of credit risk.
Interest rate risk
Short term investments mature within the range of on call to 180 days. The interest rates on these investments range from 4.60% to 5.60%.
(g) Cash and cash equivalents
For the purpose of the statement of cash flows, cash includes cash on hand, deposits held at call with banks and investments in money market instruments.
(h) Employee entitlements
A provision for employee entitlements is recognised as a liability in respect of benefits earned by employees, but not yet received at balance date. Employee benefits include annual leave and long service leave. The provision is the estimated amount expected to be paid out by the company.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 69
Gazette.govt.nz —
NZ Gazette 2002, No 69
✨ LLM interpretation of page content
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Network Tasman Limited Line Business Financial Statements
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Network Tasman Limited, Accounting Policies, Asset Valuation, Taxation, Vested Assets, Receivables, Financial Instruments, Credit Risk, Interest Rate Risk, Cash Flow, Employee Entitlements