✨ Financial Statements Notes
14 DECEMBER 2004
NEW ZEALAND GAZETTE, No. 163
4011
c) Depreciation
Depreciation is provided on either a diminishing value (DV), or straight line (SL) basis on all property, plant and equipment other than those accounted for in the infrastructure accounting method above, at rates calculated to allocate the assets' cost or valuation less estimated residual value, over their estimated useful lives.
Main depreciation rates are:
Substation assets 2.2 – 2.5% straight line
Other Distribution assets 1.4 – 6.7% straight line
Buildings 1% - 2.5% straight line and 4% diminishing value
Leasehold Improvements 11%-31% diminishing value
Plant and equipment 20% - 50% diminishing value
Computer equipment 20% - 50% straight line
Motor vehicles 20% - 25% diminishing value and 20% straight line
d) Receivables
Receivables are stated at their estimated realisable value.
e) Income tax
The tax expense against the surplus for the year is the estimated liability in respect of that surplus after allowance for permanent differences plus any adjustments arising from prior years.
Electra Limited follows the liability method of accounting for deferred tax, applied on a partial basis.
The partial basis considers the cumulative income tax effect of all timing differences. The income tax effect of timing differences is only recognised as deferred tax for those timing differences that can be expected to reverse in the foreseeable future.
Future tax benefits attributable to losses carried forward are recognised in the financial statements only where there is virtual certainty that the benefit of the losses will be utilised.
f) Lease
Operating lease payments, where the lessors retain substantially all the risks and benefits of ownership of the leased items, are included in the determination of the operating profit in equal instalments over the lease term.
g) Statement of cash flows
The following are the definitions of the terms used in the Statement of Cash Flows:
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Cash is considered to be cash on hand, short term deposits and current accounts at the banks, net of bank overdrafts.
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Investing activities are those activities relating to the acquisition, holding and disposal of fixed assets and of investments. Investments can include securities not falling within the definition of cash.
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Financing activities are those activities, which result in changes in the size and composition of the capital structure of the Company. This includes both equity and debt not falling within the definition of cash. Dividends paid are included in financing activities.
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Operating activities include all transactions and other events that are not investing or financing activities.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2004, No 163
Gazette.govt.nz —
NZ Gazette 2004, No 163
✨ LLM interpretation of page content
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Electra Limited - Notes to Financial Statements
(continued from previous page)
💰 Finance & Revenue14 December 2004
Financial Statements, Accounting Policies, Property, Plant, Equipment, Infrastructure Assets, Depreciation, Receivables, Income Tax, Lease, Cash Flows