New Zealand Gazette – 2006 – No. 145

Page 4162

✨ Financial Accounting Policies



4162 NEW ZEALAND GAZETTE, No. 145 21 NOVEMBER 2006

Other Assets are depreciated using rates which write off the cost or valuation of the fixed assets over their expected economic lives as below:

| Buildings | 1% to 2.5% SL |
| Motor Vehicles | 20% to 25% DV |
| Plant and equipment | 10% to 50% DV |
| Furniture and fittings
including computers | 20% to 48% DV |

Profits and losses on disposal are calculated as the difference between the carrying amount of the asset at the time of disposal and the proceeds of the disposal. Any depreciation recovered and any loss on sale is included in the operating result of the Group in the year of the disposal.

(d) Inventories

Stocks and work-in-progress are stated at the lower of cost and net realisable value.

The cost of stocks is determined on a weighted average basis.

Some stocks may be subject to retention of title clauses on purchase.

The cost of work-in-progress includes materials, and a portion of direct labour and production overhead appropriate to the stage of completion attained.

(e) Debtors

Debtors are stated at estimated realisable value after providing for debts where collection is doubtful.

(f) Taxation

The taxation charge against the profit for the year is the estimated liability in respect of that profit and is calculated after allowance for permanent differences and timing differences not expected to reverse in future periods. This is the partial basis for the calculation of deferred taxation.

The Company follows the liability method of accounting for deferred taxation. Future taxation benefits attributable to losses carried forward or timing differences are recognised in the financial statements only where there is virtual certainty of realisation.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 145


Gazette.govt.nz — PDF NZ Gazette 2006, No 145




✨ LLM interpretation of page content

🏭 Fixed Assets and Depreciation Policy (continued from previous page)

🏭 Trade, Customs & Industry
Fixed Assets, Depreciation, Valuation, Accounting Policies

🏭 Inventories Accounting Policy

🏭 Trade, Customs & Industry
Inventories, Stocks, Work-in-progress, Accounting Policies

🏭 Debtors Accounting Policy

🏭 Trade, Customs & Industry
Debtors, Realisable Value, Accounting Policies

🏭 Taxation Accounting Policy

🏭 Trade, Customs & Industry
Taxation, Deferred Taxation, Liability Method, Accounting Policies