✨ Financial Accounting Policies
66
NEW ZEALAND GAZETTE, No. 3
14 JANUARY 2005
WEL NETWORKS LIMITED
Expenditure
Where a segment of the Group performs line activities in addition to other functions
each item of expenditure incurred by that segment has been allocated to the line
business in proportion to the total level of line business activity undertaken by the segment. This has been
achieved using the following methodologies:
Customer services/billing 10% Lines
Marketing Revenue
Bank Balances
Cash and bank balances have been allocated based on cash movements as per the cash flow
statement.
Fixed Assets
Fixed assets used by both the line and another activity have been allocated to the line
business on the following basis:
Motor vehicles Weighted staff numbers
Plant, Furniture and equipment Weighted staff numbers
Items have been weighted by multiplying the value attributable to Other by 33%
Creditors
Creditors not directly attributable to the line business have been allocated in proportion to the
expenditure allocation as noted above.
Provision for Annual and Long Service Leave
The amount of the provision attributable to employees working on both the line business and
other activities has been allocated to the line business in proportion to wages expenditure.
(h) Leased Assets
Operating Leases
Operating Lease payments are recognised as an expense in the period the amount is payable.
C. Changes in Accounting Policy
There have been no changes in accounting policies applied during the period under review.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 3
Gazette.govt.nz —
NZ Gazette 2005, No 3
✨ LLM interpretation of page content
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Statement of Accounting Policies for WEL Networks Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Fixed Assets, Depreciation, Line Business Split, WEL Networks Limited