✨ Accounting Policies and Financial Statements
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NEW ZEALAND GAZETTE, No. 170
12 DECEMBER 2006
The key assumptions concerning the future and other key sources of estimation uncertainty at 30 June 2006, that have had a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are discussed below.
b) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, cash in banks and investments in money market instruments, net of outstanding bank overdrafts. Bank overdrafts are shown within borrowings in the balance sheet.
c) Property, Plant and Equipment
All items of property, plant and equipment are initially recognised at cost in the statement of financial position. Cost includes the value of consideration exchanged, or fair value in the case of donated or subsidised assets, and those costs directly attributable to bringing the item to working condition for its intended use.
Land and buildings are revalued from time to time for insurance purposes only. Optimised Deprival Value (ODV) is obtained from an independent registered valuer. Any impairment is recognised for accounting purposes and recognised in the Statement of Financial Performance.
d) Depreciation of Property, Plant and Equipment
Depreciation is calculated on a straight-line basis for Network Systems and on diminishing value for all other assets, to write off the cost of the assets (other than land) over the life of the assets.
Depreciation rates based on remaining useful life, for major classes of asset are:
| Land | Not Depreciated |
| Buildings | 50 years |
| Plant and Equipment | 5 to 10 years |
| Network Systems | 10 to 65 years |
e) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
f) Financial assets
Financial assets are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, are initially measured at fair value, net of transaction costs.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 170
Gazette.govt.nz —
NZ Gazette 2006, No 170
✨ LLM interpretation of page content
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Statement of Accounting Policies for Powerco Limited
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Cash and Cash Equivalents, Property Plant and Equipment, Depreciation, Borrowing Costs, Financial Assets