✨ Financial Statements and Accounting Policies
NGC HOLDINGS LIMITED
GAS RETAILING ACTIVITIES
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 30 JUNE 2008
F) PROPERTY, PLANT AND EQUIPMENT (continued)
Property, plant and equipment is subsequently measured at cost less accumulated depreciation and impairment losses. The costs of distribution systems, distribution land and distribution buildings forming part of property, plant and equipment at 1 July 2006, the date of transition to NZ IFRS, are measured on the basis of deemed historic cost in accordance with the exemption available on transition under NZ IFRS 1.
Subsequent expenditure relating to an item of property, plant and equipment is added to its gross carrying amount when such expenditure can be measured reliably and 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 expenditure would have been included in the initial cost of the item had the expenditure been incurred at that time. The costs of day-to-day servicing of property, plant and equipment are recognised in the income statement as incurred.
G) DEPRECIATION
Depreciation of property, plant and equipment is calculated on a straight line or diminishing value basis so as to expense the cost, or revalued amount, less any expected residual value of the property, plant and equipment to the income statement over its useful economic life.
| ESTIMATED USEFUL LIVES | |
|---|---|
| Plant, vehicles and equipment | 3 – 40 years |
H) LEASED ASSETS
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 income statement in equal instalments over the lease term.
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.
CHANGES IN ACCOUNTING POLICIES
The Vector group elected to adopt 1 July 2006 as its transition date to the requirements of NZ IFRS in accordance with NZ IFRS 1, First-time Adoption of New Zealand Equivalents to International Financial Reporting Standards. An explanation of how the transition to NZ IFRS has affected the reported financial position and financial performance of the Vector group is provided in detail in its annual report for the year ended 30 June 2008.
All accounting policies that apply to the Vector group after transition to NZIFRS have been applied to these financial statements for the year ended 30 June 2008 and comparative year ended 30 June 2007.
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NZ Gazette 2008, No 185
✨ LLM interpretation of page content
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NGC Holdings Limited Balance Sheet for Gas Retailing Activities
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial statements, Accounting policies, Property, Plant, Equipment, Depreciation, Leased assets, Employee entitlements, NZ IFRS, Gas retailing, NGC Holdings Limited