✨ Financial Accounting Policies
2390 NEW ZEALAND GAZETTE No. 93
Depreciation
Fixed assets have been depreciated, so as to write off cost less estimated residual value over their estimated useful lives, on the following basis:
Distribution System
1.4% to 2.2% (45 to 70 years) straight line (SL) for lines, cables & zone substations
2.2% to 2.9% (35 to 45 years) SL for switchgear, distribution transformers, distribution substations, service connection equipment and most other distribution equipment other than voltage regulators (which are depreciated at 1.8%, 55 years SL)
Buildings
1% to 4% SL for the majority of buildings
Plant & Equipment
40% DV for computer hardware and software
20% and 25% DV for other items
Motor Vehicles
20% and 25% DV for majority of vehicles
Estimated useful lives of Distribution System fixed assets were reviewed in conjunction with their revaluation to Depreciated Replacement Cost on 31 March 2003.
Taxation
The tax expense recognised for the year is based on the accounting surplus, adjusted 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. This is the partial basis for the calculation of deferred tax under the liability method.
A deferred tax asset, or the effect of losses carried forward that exceed the deferred tax liability, is recognised in the financial statements only where there is virtual certainty that the benefit of the timing differences, or losses, will be utilised.
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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
💰 Depreciation of Fixed Assets
💰 Finance & RevenueDepreciation, Fixed Assets, Distribution System, Buildings, Plant & Equipment, Motor Vehicles
💰 Taxation Policies
💰 Finance & RevenueTax Expense, Accounting Surplus, Deferred Tax, Liability Method