✨ Financial Statements Notes
NEW ZEALAND GAZETTE, No. 136
14 NOVEMBER 2006
3923
WAIPA NETWORKS LIMITED - LINES BUSINESS
c) Capital Contributions
Contributions towards the cost of additions to the Reticulation Assets are recognised as income when received.
d) Depreciation
Land is not depreciated. Depreciation has been provided on other Property, Plant and Equipment using the straight line method at rates which amortise the cost or valuation less estimated residual value over their economic lives.
Depreciation on assets purchased during the year has been charged on a monthly basis from month of purchase.
| Buildings | 3.0% |
| Reticulation Assets | 2.5% |
| Motor Vehicles | 20.0% |
| Computers Equipment & Software | 20.0% |
| Plant, Furniture & Fittings | 10.0% |
e) Receivables
Receivables are stated at their estimated realisable value after adequate provision for doubtful debts. Bad debts are written off in the period they are identified.
f) Income Tax
The income tax expense charged to the Statement of Financial Performance includes both current and deferred tax. Deferred tax is calculated using the liability method, and is accounted for using the partial basis.
A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.
g) Inventories
Inventories are stated at the lower of weighted average cost and net realisable value. Cost of work in progress and finished goods includes the cost of direct material, direct labour and a proportion of the manufacturing overhead expended in putting the inventories in their present location and condition.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 136
Gazette.govt.nz —
NZ Gazette 2006, No 136
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Notes to Financial Statements of Waipa Networks Limited
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