✨ Financial Statements Notes
20 NOVEMBER 2006
NEW ZEALAND GAZETTE, No. 142
4107
TOP ENERGY LIMITED-LINE BUSINESS
NOTES TO THE FINANCIAL STATEMENTS
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 2006
3 Taxation
The taxation charged against the profit for the year is both the current year’s provision and the income tax effects of timing differences calculated using the liability method.
Tax effect accounting is applied on a comprehensive basis to all timing differences. Future taxation benefits attributable to timing differences or to losses carried forward are recognised in the financial statements only where there is virtual certainty that the benefit of the losses will be utilised by the Company.
4 Accounts Receivable
Accounts receivable are stated at estimated realisable value after providing against debts where collection is doubtful.
5 Property, Plant & Equipment
Property, plant & equipment held by the former Bay of Islands Electric Power Board were vested in the Company, Top Energy Ltd, on 1 May 1993 under the Energy Companies Act 1992. Property, plant & equipment were vested at book value as at 1 May 1993, and represent "cost" to the Company.
The cost of property, plant & equipment purchased after 1 May 1993 is the 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.
The cost of self - constructed assets includes the cost of all materials used in construction, direct labour on the project, costs of obtaining Resource Management Act consents and an appropriate proportion of variable and fixed overheads. Costs cease to be capitalised as soon as the asset is ready for productive use and do not include any inefficiency cost.
The Distribution system asset has been valued to depreciated replacement cost at 31 March 2004 based on a valuation conducted by Sinclair, Knight and Mertz Ltd, registered valuers. The Distribution system asset is valued on a 3 - 5 year cycle.
Capital work-in-progress includes materials, and a portion of direct labour and production overhead appropriate to the stage of completion attained.
Land and Buildings relating to substations are "owned" by the lines business. These have been valued to fair value at 31 March 2004 based on a valuation conducted by Telfer Young Ltd, registered valuers.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 142
Gazette.govt.nz —
NZ Gazette 2006, No 142
✨ LLM interpretation of page content
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Top Energy Limited Statement of Cash Flows
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statement, Cash Flows, Operating Activities, Net Profit, Taxation, Line Business
🏭 Top Energy Limited Notes to the Financial Statements
🏭 Trade, Customs & IndustryFinancial Statements, Taxation, Accounts Receivable, Property Plant & Equipment, Valuation