✨ Financial Accounting Policies
5004 NEW ZEALAND GAZETTE, No. 191 9 DECEMBER 2008
a) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, cash in banks and investments in money market instruments. Bank overdrafts are shown within borrowings in current liabilities in the Balance Sheet.
b) Property, plant and equipment
All items of property, plant and equipment are initially recognised at cost in the Balance Sheet. 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. Any impairment is recognised for accounting purposes and recognised in the Income Statement.
The gain or loss on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the profit and loss.
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. They are initially measured at fair value plus transaction costs, except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value.
Financial assets are classified into one of four categories: financial assets at fair value through profit or loss, held to maturity investments, available for sale financial assets or loans and receivables. At balance date the Division had the following classes of financial assets:
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NZ Gazette 2008, No 191
✨ LLM interpretation of page content
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Powerco Limited Gas Information Disclosure Certification
(continued from previous page)
🏭 Trade, Customs & Industry27 November 2008
Gas, Information Disclosure, Financial Statements, Performance Measures, Powerco Limited
💰 Cash and Cash Equivalents Accounting Policy
💰 Finance & RevenueCash, Cash Equivalents, Money Market Instruments, Bank Overdrafts, Borrowings, Current Liabilities
💰 Property, Plant and Equipment Accounting Policy
💰 Finance & RevenueProperty, Plant, Equipment, Cost, Valuation, Insurance, Impairment, Income Statement, Disposal, Retirement
💰 Depreciation of Property, Plant and Equipment Accounting Policy
💰 Finance & RevenueDepreciation, Straight-line, Diminishing Value, Network Systems, Asset Life, Depreciation Rates
💰 Borrowing Costs Accounting Policy
💰 Finance & RevenueBorrowing Costs, Acquisition, Construction, Production, Qualifying Assets, Profit and Loss
💰 Financial Assets Accounting Policy
💰 Finance & RevenueFinancial Assets, Recognition, Derecognition, Trade Date, Fair Value, Transaction Costs, Profit and Loss