✨ Financial Accounting Policies
NEW ZEALAND GAZETTE
No. 116
c) Depreciation of Property, Plant and Equipment
Depreciation rates based on remaining useful life, for major classes of asset are:
| Asset Class | Depreciation Period |
|---|---|
| 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%.
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.
h) Investments
Investments are valued at the lower of cost and net realisable value.
i) Revenue Recognition
Revenue from the sale of distribution and value-added services is recognised when services are provided.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 116
Gazette.govt.nz —
NZ Gazette 2003, No 116
✨ LLM interpretation of page content
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Powerco Limited Financial Accounting Policies
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🏭 Trade, Customs & Industry21 August 2003
Depreciation, Property, Plant, Equipment, Accounting Policies, Revenue Recognition