✨ Financial Accounting Policies
5 DECEMBER 2006
NEW ZEALAND GAZETTE, No. 166
4791
Non-distribution system assets
- Plant and equipment
- Computer equipment
- Motor vehicles
Initial recording
All owned items of property, plant and equipment are initially recorded at cost. The cost of an item of property, plant and equipment comprises its purchase price plus any other costs directly attributable to bringing the item to working condition for its intended use. Donated assets are recorded at fair value.
Distribution system assets are stated at valuation as determined every three years by an independent registered valuer. Plant and equipment, computer equipment and motor vehicles are recorded at cost.
Asset components
When the components of an item of property, plant and equipment have different useful lives, the cost of the item is allocated to its components and each component is accounted for separately in accordance with the company’s Asset Management Plan (AMP).
Subsequent expenditure
Subsequent expenditure relating to an item of property, plant and equipment is capitalised when it is probable that the expenditure increases the economic benefits over the total life of the item beyond those most recently assessed in determining the basis of the item’s carrying amount.
Revaluations
Distribution system assets are revalued every three years to fair value, or more regularly if necessary to ensure that no individual item of property, plant and equipment within a class is included at a valuation that is materially different from its fair value. Fair value is determined using optimised depreciated replacement cost.
Distribution system assets were last revalued as at 31 March 2004 to optimised depreciated replacement cost (ODRC) as assessed by independent valuers PricewaterhouseCoopers.
Any revaluation increment or decrement is recognised in the statement of movements in equity. If the revaluation results in a revaluation deficit, the revaluation deficit is recognised in the statement of financial performance. To the extent that a revaluation reverses a previous revaluation deficit that was recognised in the statement of financial performance, such revaluation increment is recognised in the statement of financial performance.
Disposal of property, plant and equipment
Where an item of property, plant and equipment is disposed of, the difference between net disposal proceeds and the carrying amount is recognised in the statement of financial performance.
Depreciation
Depreciation of property, plant and equipment is calculated so as to expense the cost or revalued amount of the assets, less any residual value, over the assets useful lives.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 166
Gazette.govt.nz —
NZ Gazette 2006, No 166
✨ LLM interpretation of page content
🏭
Network Tasman Limited Financial Statements
(continued from previous page)
🏭 Trade, Customs & Industry15 November 2006
Financial Statements, Accounting Policies, Revenue, Property, Plant and Equipment, Network Tasman Limited