✨ Financial Statements
30 NOVEMBER 2007 NEW ZEALAND GAZETTE, No. 132 3441
NGC HOLDINGS LIMITED
GAS TRANSMISSION ACTIVITIES
STATEMENT OF ACCOUNTING POLICIES (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2007
G) DEPRECIATION
Depreciation of property, plant and equipment, other than gas turbines and freehold land, is calculated on a straight line or diminishing value so as to expense the cost, or revalued amount, less any expected residual value of the property, plant and equipment to the statement of financial performance over its useful economic life.
| USEFUL LIVES | |
|---|---|
| YEARS | |
| Pipelines, compressors and gate stations | 35 - 65 |
| Other plant and equipment | 5 - 20 |
| Motor Vehicles | 3 - 20 |
| Buildings | 40 - 100 |
H) LEASED ASSETS
Finance leases
Property, plant and equipment under finance leases are recognised as non-current assets in the statement of financial position. Leased property, plant and equipment are recognised initially at the lower of the present value of the minimum lease payments or their fair value. A corresponding liability is established and each lease payment allocated between the liability and the interest expense. Leased property, plant and equipment are depreciated on the same basis as equivalent owned property, plant and equipment.
Operating leases
Lease payments under operating leases, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased property, plant and equipment are expensed to the statement of financial performance in equal instalments over the lease term.
Leasehold improvements
The cost of improvements to leasehold property are capitalised and depreciated over the unexpired period of the lease or the estimated useful life of the improvements, whichever is the shorter.
I) PROVISIONS
Employee entitlements
Employee entitlements to salaries and wages, annual leave, long-term leave and other benefits are recognised when they accrue to employees.
Other provisions
A provision is recognised as a liability where a constructive or legal obligation exists to settle items in the foreseeable future. A provision is recognised where the likelihood of a resultant liability is considered more probable than not. Where the likelihood of a resultant liability is more than remote but insufficient to warrant a provision, such events are disclosed as contingent liabilities.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2007, No 132
Gazette.govt.nz —
NZ Gazette 2007, No 132
✨ LLM interpretation of page content
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Certification of Financial Statements by Directors
(continued from previous page)
💰 Finance & Revenue30 November 2007
Financial statements, Accounting policies, Gas transmission, Income recognition, GST, Receivables, Inventories, Income tax, Property, Plant, Equipment, Depreciation, Leased assets, Employee entitlements