✨ Financial Statements Notes
3770 NEW ZEALAND GAZETTE, No. 131 8 NOVEMBER 2006
d) Receivables
Receivables are stated in their estimated realisable value. All known losses are written off in the period in which it becomes apparent the debts are not collectable.
e) Inventories
Inventories are stated at the lower of cost of weighted average cost price and net realisable value.
f) Property, Plant and Equipment
All property, plant and equipment is initially recorded at cost less accumulated depreciation. The cost of purchased property, plant and equipment is the fair value of the consideration given to acquire the assets and the value of other directly attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended service.
Revaluation
The network system assets were revalued as at 31 March 2004 to Depreciated Replacement Cost (DRC) as assessed by independent valuers MWH New Zealand Limited. Previously these assets were recorded at cost less accumulated depreciation.
Network assets are revalued on a cyclical basis to fair value using a Depreciated Replacement Cost methodology with no asset being recognised at a valuation undertaken more than five years previously.
Revaluation increments are transferred to the Asset Revaluation Reserve.
All other assets are recorded at cost less accumulated depreciation.
g) Depreciation
Property, Plant and Equipment is depreciated on the basis of valuation cost price less estimated residual value over the period of their estimated useful life.
Rates used are:
| Buildings | 2.50% - 15.00% | Straight Line/Diminishing Value |
| Office Equipment & EDP | 9.00% - 60.00% | Diminishing Value |
| Motor Vehicles | 26.00% - 31.20%| Diminishing Value |
| Network Assets | 1.82% - 16.67% | Straight Line/Diminishing Value|
h) Asset Impairment
Where the estimated recoverable amount of an asset is less than its carrying value, the asset is written down to its estimated recoverable amount and an impairment loss is recognised in the Statement of Financial Performance.
i) Income Tax
The income tax expense charged against the profit for the year is the estimated liability calculated at 33 cents in the dollar in respect of that profit.
j) Capital Work In Progress
Capital Work In Progress is stated at cost and is not depreciated.
k) Goods And Services Tax
These accounts have been prepared on a GST exclusive basis with the exception of accounts receivable and accounts payable which are GST inclusive.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 131
Gazette.govt.nz —
NZ Gazette 2006, No 131
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Notes to Financial Statements for The Power Company Limited
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🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Receivables, Inventories, Property, Plant and Equipment, Depreciation, Asset Impairment, Income Tax, Capital Work In Progress, Goods And Services Tax, The Power Company Limited