✨ Financial Statements Notes
4280 NEW ZEALAND GAZETTE, No. 148 24 NOVEMBER 2006
(Notes to the Consolidated Financial Statements Continued)
d) Receivables
Receivables are stated at 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 at 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 Electricity Invercargill Limited network assets were revalued as at 31 March 2004 to Depreciated Replacement Cost (DRC) as assessed by independent valuers PricewaterhouseCoopers. Previously these assets were recorded at cost less accumulated depreciation.
Network assets are revalued on a cyclical basis with no asset being recognised at a valuation undertaken more than five years previously.
Revaluation increments are transferred to the Asset Revaluation Reserve.
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.
The depreciation rates that reflect the economic life of the various classes of assets are:
| Buildings | 1.0%-10.0% | Straight line/diminishing value |
| Plant and Equipment | 5.0%-48% | Straight line/diminishing value |
| Motor Vehicles | 18.0%-31.2% | Diminishing value |
| Office Furniture and EDP Equipment | 5.0%-60.0% | Straight line/diminishing value |
| Network Assets | 1.4%-15.0% | Straight line |
h) Impairment
If the estimated recoverable amount of an asset is less than its carrying amount, 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) Goods and Services Tax
All amounts in the financial statements have been shown exclusive of goods and services tax, with the exception of accounts receivable and accounts payable, which are shown inclusive of goods and services tax.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 148
Gazette.govt.nz —
NZ Gazette 2006, No 148
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Financial Statements of Electricity Invercargill Limited Line Business
(continued from previous page)
🏭 Trade, Customs & Industry20 November 2006
Electricity, Financial Statements, Notes, Receivables, Inventories, Property, Plant and Equipment, Depreciation, Impairment, Income Tax, Goods and Services Tax