✨ Financial Accounting Policies
30 SEPTEMBER 2005 NEW ZEALAND GAZETTE, No. 166 4175
b) Contributions for Subdivisions/Uneconomic Lines
Contributions received from customers and grants towards the costs of reticulating new subdivisions and contributions received in constructing uneconomic lines are recognised as revenue. Any identified impairment losses in respect of uneconomic lines are recognised in the Statement of Financial Performance and the asset component is written down to its fair value.
c) Property, Plant and Equipment
All items of property, plant and equipment are initially recognised at cost in the statement of financial position. Cost includes the value of consideration exchanged, or fair value in the case of donated or subsidised assets, and those costs directly attributable to bringing the item to working condition for its intended use.
Land and buildings are revalued from time to time for insurance purposes only. Optimised Deprival Value (ODV) is obtained from an independent registered valuer. Any impairment is recognised for accounting purposes and recognised in the Statement of Financial Performance.
d) Depreciation of Property, Plant and Equipment
Depreciation rates based on remaining useful life, for major classes of asset are:
| Asset Class | Depreciation Rate |
|---|---|
| Land | Not Depreciated |
| Buildings | 100 years |
| Furniture and Fittings | 5 to 10 years |
| Office Equipment | 3 to 10 years |
| Motor Vehicles | 5 years |
| Network Systems | 10 to 60 years |
e) Properties Intended for Resale
Properties intended for resale are shown at the lower of cost or net realisable value.
f) Comparative Figures
Comparative information has been reclassified, where necessary, to achieve consistency in disclosure with the current year.
g) Employees Entitlements
Liabilities for amounts expected to be paid to employees for their entitlement to annual leave and other current employee entitlements are measured as the amount unpaid at the reporting date at current pay rates in respect of employees' services up to that date.
A liability for long service leave is accrued for the value of expected future payments to be made in respect of services already provided by employees up to the balance date.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 166
Gazette.govt.nz —
NZ Gazette 2005, No 166
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