✨ Financial Statements
4792
NEW ZEALAND GAZETTE, No. 166
5 DECEMBER 2006
The depreciation methods and depreciation rates used are as follows:
| Asset class | Depreciation method | Depreciation rates |
|---|---|---|
| Primary distribution assets | Straight line | 1.33% - 6.16% |
| Secondary distribution assets | Straight line | 1.33% - 9.20% |
| Substation assets | Straight line | 1.43% - 13.31% |
| Load control plant | Straight line | 1.82% - 17.33% |
| Streetlights | Straight line | 1.67% - 33.33% |
| Consumer connection assets | Straight line | 2.22% - 33.33% |
| Communication assets | Straight line | 4.00% - 5.00% |
| Plant and equipment | Diminishing value | 20% |
| Motor vehicles | Diminishing value | 20% |
| Computer equipment | Diminishing value | 48% |
The depreciation rates on distribution system assets in existence at the time of the previous revaluation (31 March 2004) are based on the assessed residual lives as determined in the calculation of the Optimised Depreciated Replacement Cost (ODRC).
New assets (as from 1 April 2004) were assessed based on the standard useful lives as contained in the Handbook for Optimised Deprival Valuation of System Fixed Assets of Electricity Line Businesses as issued by the Commerce Commission and dated 30 August 2004.
Pole structures, which have a physical life well in excess of the standard useful lives, were assessed by the company's qualified engineers.
(c) Income tax
Income tax expense is recognised on the operating surplus before taxation, adjusted for permanent differences between taxable and accounting income.
Deferred tax is calculated using the comprehensive basis under the liability method. This involves recognising the tax effect of all timing differences between accounting and taxable income as a deferred tax asset or liability on the statement of financial position.
A deferred tax asset is recognised only where there is virtual certainty that the benefit will be utilised.
(d) Receivables
Receivables are carried at estimated net realisable value after providing for debts where collection is in doubt.
(e) Impairment
Where the estimated recoverable amount of an asset is less than the carrying amount, the asset is written down. The impairment loss is recognised in the statement of financial performance.
(f) Cash and cash equivalents
For the purpose of the statement of cash flows, cash includes cash on hand, deposits held at call with banks and investments in money market instruments.
(g) Employee entitlements
A provision for employee entitlements is recognised as a liability in respect of benefits earned by employees but not yet received at balance date. Employee benefits include annual leave and long service leave. The provision is the estimated amount expected to be paid out by the company.
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, Depreciation Methods, Depreciation Rates, Income Tax, Receivables, Impairment, Cash and Cash Equivalents, Employee Entitlements