New Zealand Gazette – 2006 – No. 171

Page 4945

✨ Financial Reporting Guidelines



13 DECEMBER 2006 NEW ZEALAND GAZETTE, No. 171 4945

Disposal of Property, Plant and Equipment

When an item of property, plant or equipment is disposed of, any gain or loss is recognised in the Statement of Financial Performance and is calculated as the difference between the sale price and the carrying value of the asset.

The carrying values of property, plant and equipment do not exceed their estimated recoverable value.

Depreciation

Depreciation of property, plant and equipment, other than freehold land, is calculated on a straight line basis so as to expense the cost of the assets, or the revalued amounts, to their residual values over their useful lives as follows:

Estimated useful lives

  • Buildings 50 - 100 years
  • Office and computer equipment 5 - 15 years
  • Distribution system 0 - 70 years
  • Motor vehicles 3 - 15 years
  • GIS 10 years
  • Plant, equipment and tools 5 - 10 years

Subsequent Expenditure

Subsequent expenditure relating to an item of property, plant and equipment is added to its gross carrying amount when such expenditure either increases the future economic benefits beyond its existing service potential, or is necessarily incurred to enable future economic benefits to be obtained, and that the expenditure would have been included in the initial cost of the item had the expenditure been incurred at that time.

Capitalisation

Capital expenditure is defined as all expenditure incurred in the creation of a new asset, replacement of an asset that has reached the end of its economic life, or increased service potential of an existing asset. Constructed assets are included in property, plant and equipment as each becomes operational and available for use.

Employee Entitlements

A liability for annual leave, long service leave and retirement gratuities is accrued and recognised in the Statement of Financial Position. Liabilities for annual and long service leave are calculated on an entitlement basis at current rates. Retirement gratuity liability is calculated using current rates and appropriate probabilities.

Investments

All investments are stated at cost price and then adjusted to account for amortisation of premiums or discounts to face value.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 171


Gazette.govt.nz — PDF NZ Gazette 2006, No 171




✨ LLM interpretation of page content

🏭 Certification of Financial Statements and Performance Measures (continued from previous page)

🏭 Trade, Customs & Industry
27 November 2006
Financial statements, Performance measures, Certification, Commerce Commission, Electricity Information Disclosure Requirements, GST, Receivables, Inventories, Property, Plant and Equipment, Distribution assets, Land and Buildings, Vehicles, Plant, Furniture and Fittings, Office Equipment, Revaluations

🏭 Disposal of Property, Plant and Equipment

🏭 Trade, Customs & Industry
Disposal, Property, Plant, Equipment, Financial Performance, Gain, Loss, Sale Price, Carrying Value

🏭 Depreciation of Property, Plant and Equipment

🏭 Trade, Customs & Industry
Depreciation, Straight Line Basis, Estimated Useful Lives, Buildings, Office Equipment, Computer Equipment, Distribution System, Motor Vehicles, GIS, Plant, Equipment, Tools

🏭 Subsequent Expenditure on Property, Plant and Equipment

🏭 Trade, Customs & Industry
Subsequent Expenditure, Gross Carrying Amount, Future Economic Benefits, Service Potential, Initial Cost

🏭 Capitalisation of Expenditure

🏭 Trade, Customs & Industry
Capital Expenditure, New Asset, Replacement Asset, Economic Life, Service Potential, Constructed Assets, Property, Plant, Equipment

🏭 Employee Entitlements

🏭 Trade, Customs & Industry
Employee Entitlements, Annual Leave, Long Service Leave, Retirement Gratuities, Statement of Financial Position, Current Rates, Probabilities

🏭 Investments Valuation

🏭 Trade, Customs & Industry
Investments, Cost Price, Amortisation, Premiums, Discounts, Face Value