✨ Financial Accounting Policies
21 JANUARY 2005
NEW ZEALAND GAZETTE, No. 25
597
Other Assets are depreciated using rates which write off the cost or valuation of the fixed assets over their expected economic lives as below:
Buildings 1% to 2.5% SL
Motor Vehicles 25% DV
Plant and equipment 10% to 50% DV
Furniture and fittings
including computers 20% to 48% DV
Profits and losses on disposal are calculated as the difference between the carrying amount of the asset at the time of disposal and the proceeds of the disposal. Any depreciation recovered and any loss on sale is included in the operating result of the Group in the year of the disposal.
(d) Inventories
Stocks and work-in-progress are stated at the lower of cost and net realisable value.
The cost of stocks is determined on a weighted average basis.
Some stocks may be subject to retention of title clauses on purchase.
The cost of work-in-progress includes materials, and a portion of direct labour and production overhead appropriate to the stage of completion attained.
(e) Debtors
Debtors are stated at estimated realisable value after providing for debts where collection is doubtful.
(f) Taxation
The taxation charge against the profit for the year is the estimated liability in respect of that profit and is calculated after allowance for permanent differences and timing differences not expected to reverse in future periods. This is the partial basis for the calculation of deferred taxation.
The Company follows the liability method of accounting for deferred taxation. Future taxation benefits attributable to losses carried forward or timing differences are recognised in the financial statements only where there is virtual certainty of realisation.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 25
Gazette.govt.nz —
NZ Gazette 2005, No 25
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