✨ Financial Accounting Policies
Goods and Services Tax (GST)
The statement of financial performance and statement of cash flows have been prepared so that all components are stated exclusive of GST. All items in the statement of financial position are stated net of GST, with the exception of receivables and payables, which include GST invoiced.
Accounts Receivable
Accounts receivable are stated at expected net realisable value after providing against debts where collection is doubtful.
Employee Entitlements
Employee entitlements to salaries and wages, annual leave, long service leave and other benefits are recognised when they accrue to employees.
Fixed Assets
Initial Recording
The cost of purchased fixed assets is the value of the consideration given to acquire the assets and the value of other directly attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended service.
The cost of self-constructed assets includes the cost of all materials used in construction, direct labour and an appropriate proportion of variable and fixed overheads. Costs cease to be capitalised as soon as the asset is ready for productive use and do not include any inefficiency costs.
Valuation
Distribution system assets are normally revalued to depreciated replacement cost at intervals of three years. The next revaluation under this cycle would normally have occurred in the year ending 31 March 2004. Because the existing valuation was considered to no longer adequately represent current replacement costs an out of cycle revaluation was undertaken as at 31 March 2003. In accordance with the existing accounting policy, the next revaluation will occur in the year ending 31 March 2004.
Impairment
Annually, the Directors assess the carrying value of major assets. Where the estimated recoverable amount of the asset is less than its carrying amount, the asset is written down. The impairment, if any, is recognised in the statement of financial performance.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 93
Gazette.govt.nz —
NZ Gazette 2003, No 93
✨ LLM interpretation of page content
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Audit Report for Counties Power Limited Line Business
(continued from previous page)
💰 Finance & Revenue16 July 2003
Audit, Financial Statements, Electricity, Information Disclosure, Counties Power Limited
💰 Accounting Policies for Financial Statements
💰 Finance & RevenueFinancial Statements, GST, Accounts Receivable, Employee Entitlements, Fixed Assets