✨ Financial Accounting Policies
NEW ZEALAND GAZETTE
No. 158
Inventories
Inventories are stated at the lower of cost and net realisable value. Costs are assigned to inventories on hand at balance date using weighted average cost.
Investments
Investments are stated at cost price or net realisable value.
Property Plant and Equipment
The distribution network is valued at optimised depreciated replacement cost, at 30 June 2003 by James Coe, B Sc, B E (Electrical), M.B.A, Registered Engineer, and Member of IPENZ - Network Manager and reviewed in accordance with FRS-3 by Bruce Wattie, CA, BCA, Partner - Financial Advisory Services of PricewaterhouseCoopers, and Guenter Wabnitz, Dipl.Ing (German), VDI, MIPENZ, Senior Consultant - Meritec Limited.
All other fixed assets are recorded at cost.
Depreciation
Depreciation is provided on a straight line basis on all tangible fixed assets, at rates calculated to allocate the asset's cost, or optimised deprival value, less estimated residual life, over their estimated useful lives.
Major depreciation rates are:
| Mains & Services | 1-10% S.L |
| Condition Renewals | 2% S.L |
| Meters & Customer Station Robots | 1-10% S.L |
| Vehicles, Plant, Office Equipment & Furniture and Fittings | 20% S.L |
| Computer Hardware & Software | 33% S.L |
| Leasehold Improvements | 10-15% S.L|
Financial Instruments
The Company is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, short term deposits, debtors, creditors and loans. All financial instruments are recognised in the statement of financial position and all revenues and expenses in relation to financial instruments are recognised in the statement of financial performance.
Employee Entitlements
Provision is made in respect of the Company’s liability for annual leave and long service leave. Annual leave and long service leave have been calculated on an accrual entitlement basis, at current rates of pay.
Income Tax
The taxation charge against the profit for the period is the estimated liability in respect of that profit after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. This is the partial basis for the calculation of deferred taxation.
The Company follows the liability method of accounting for deferred taxation.
Future tax benefits attributable to tax losses or timing differences are only recognised when there is virtual certainty of realisation.
Changes in Accounting Policies
There has been a change in accounting policy, in respect of the valuation of Distribution Network, from optimised deprival value to optimised depreciated replacement cost. This change was made in order to comply with the requirements of FRS-3. The change did not have a material effect in the current period. All other policies have been applied on bases consistent with those used in the previous period.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 158
Gazette.govt.nz —
NZ Gazette 2003, No 158
✨ LLM interpretation of page content
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Wanganui Gas Limited Financial Statements Certification
(continued from previous page)
🏭 Trade, Customs & Industry16 February 2003
Gas, Information Disclosure, Regulations, Financial Statements, Certification, Wanganui Gas Limited
🏭 Accounting Policies for Inventories, Investments, and Property
🏭 Trade, Customs & IndustryAccounting Policies, Inventories, Investments, Property Plant and Equipment, Depreciation, Financial Instruments, Employee Entitlements, Income Tax
- James Coe (B Sc, B E (Electrical), M.B.A, Registered Engineer, Member of IPENZ), Network Manager for Distribution Network valuation
- Bruce Wattie (CA, BCA, Partner - Financial Advisory Services), Reviewer of Distribution Network valuation
- Guenter Wabnitz (Dipl.Ing (German), VDI, MIPENZ, Senior Consultant), Reviewer of Distribution Network valuation