✨ Financial Accounting Policies
Vector Limited
Electricity Lines Business
Statement of Accounting Policies – continued
For the year ended 31 March 2004
Provision for claims
A provision for claims is recognised as a liability where the Vector group, of which the electricity lines business is the predominant activity, considers that a constructive or legal obligation to settle items under litigation or dispute may exist in the foreseeable future. A provision for claims is recognised where the likelihood of a resultant liability is considered more probable than not. Other claims where the likelihood of a resultant liability is more than remote but insufficient to warrant a provision are disclosed as contingent liabilities.
m) Statement of cash flows
The following are the definitions of the terms used in the statement of cash flows:
Operating activities include all transactions and other events that are not investing or financing activities.
Investing activities are those activities relating to the acquisition, holding and disposal of property, plant and equipment and of investments which can include securities not falling within the definition of cash.
Financing activities are those that result in changes in the size and composition of the capital structure. This includes both equity and debt not falling within the definition of cash. Dividends paid in relation to the capital structure are included in financing activities.
Cash is considered to be cash on hand and current accounts in banks, net of bank overdrafts.
n) Dividends
Dividends are brought to account in the period in which they are declared.
o) Investments
Investments held for resale are stated at the lower of cost or net realisable value.
Changes in accounting policy
There have been no changes in accounting policies during the year and all policies have been applied on a basis consistent with those used in the prior period.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 27
Gazette.govt.nz —
NZ Gazette 2005, No 27
✨ LLM interpretation of page content
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Statement of Accounting Policies for Vector Limited – Electricity Lines Business
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Vector Limited, Electricity Lines Business, Provision for Claims, Cash Flows, Dividends, Investments