✨ Financial Accounting Policies
3472 NEW ZEALAND GAZETTE, No. 133 30 NOVEMBER 2007
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. Any impairment is recognised for accounting purposes and recognised in the Income Statement.
c) Depreciation of property, plant and equipment
Depreciation is calculated on a straight-line basis for Network Systems and on diminishing value basis 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:
Network assets 10 to 65 years
Plant and equipment 5 to 10 years
d) 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.
e) 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.
Other financial assets are classified into one of four categories: financial assets at fair value through the profit or loss; held to maturity investments; available for sale financial assets or loan and receivables. At balance date the Division had the following classes of financial assets:
Loans and receivables
Trade receivables and other receivables are recorded at amortised cost less impairment.
f) Financial liabilities
Financial liabilities are recognised when the Division became party to the contractual provisions of the instrument.
g) Term debt
All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of issue costs associated with the borrowing. Subsequent to initial recognition, loans and borrowings are carried at amortised cost. Borrowing costs are
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2007, No 133
Gazette.govt.nz —
NZ Gazette 2007, No 133
✨ LLM interpretation of page content
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Powerco Gas Division Accounting Policies
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🏭 Trade, Customs & Industry27 November 2007
Accounting Policies, Financial Statements, Gas Division, Powerco, Reporting Entity, Critical Accounting Estimates, Basis of Preparation, Cash Equivalents, Property Plant Equipment, Depreciation, Borrowing Costs, Financial Assets, Financial Liabilities, Term Debt