✨ Accounting Policies and Disclosures
2364
NEW ZEALAND GAZETTE
No. 92
(f) 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.
The Economic life ranges for the various classes of assets are:
Buildings 4.0%-10.0% Straight line/diminishing value
Plant and Equipment 7.0%-39.6% Straight line/diminishing value
Motor Vehicles 26.0%-31.2% Straight line/diminishing value
Office Furniture & EDP Equipment 9.0%-60.0% Straight line/diminishing value
Shared Assets 9.0%-48.0% Diminishing value
Network Assets 15-70 years Straight line
(g) Distinction Between Capital and Revenue Expenditure
Capital expenditure is defined as all expenditure on the creation of a new asset and any expenditure which results in a significant improvement to the original function of an existing asset.
(h) Income Tax
The income tax expense charged against the profit for the year is the estimated liability calculated at 33 cents in the dollar in respect of that profit.
(i) Goods and Services Tax
All amounts in the financial statements have been shown exclusive of goods and services tax, with the exception of accounts receivable and accounts payable, which are shown inclusive of goods and services tax.
(j) 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.
(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 these 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
Previously the network assets were disclosed at optimised depreciated replacement cost (ODRC), they are now shown at depreciated replacement cost (DRC). The effect of this change has increased the net book value of the network assets by $302,629.
There were no other changes in accounting policies during the year ended 31 March 2003.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 92
Gazette.govt.nz —
NZ Gazette 2003, No 92
✨ LLM interpretation of page content
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Electricity Information Disclosure for Invercargill Limited
(continued from previous page)
🏭 Trade, Customs & Industry24 July 2003
Electricity, Financial Statements, Accounting Policies, Invercargill Limited, Depreciation, Income Tax, Goods and Services Tax, Work in Progress, Operating Leases, Employee Entitlements