✨ Financial Accounting Policies
2840 NEW ZEALAND GAZETTE No. 108
(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 those 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
There have been no changes in accounting policies during the year ended 31 March 2003.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 108
Gazette.govt.nz —
NZ Gazette 2003, No 108
✨ LLM interpretation of page content
🏭
Accounting Policies of The Power Company Limited
(continued from previous page)
🏭 Trade, Customs & Industry6 August 2003
Accounting Policies, Depreciation, Receivables, Inventories, Income Tax, Work in Progress, GST, Operating Leases, Employee Entitlements