✨ Corporate Financial Disclosure
11 JANUARY 2008 NEW ZEALAND GAZETTE, No. 3 61
(c) Dividends
Dividends have been calculated in accordance with the Company’s dividend policy.
(d) Allocation of Assets and Liabilities
Assets and liabilities are those which are directly related to the Lines Business.
(e) Current Assets
Accounts receivable are those directly related to the Lines Business and are valued at expected realisable value less provision for doubtful debts.
(f) Fixed Assets
On 30 April 2005, Aurora Energy revalued its electricity distribution network assets, excluding land and buildings, to the fair market value determined by the chartered accounting firm of KPMG. In the opinion of the Directors and their professional advisors, this best represents the fair value of those assets.
The increment in value resulting from this is credited to the revaluation reserves of the Company after adjusting for depreciation previously claimed.
Electricity network distribution additions since 1 May 2005 are carried at cost less depreciation.
Electricity Distribution Land and Buildings
Land and buildings associated with the electricity distribution network were revalued on 1 July 2001 to the fair market valuation as determined by the chartered accounting firm of KPMG. These revalued assets are carried at their revalued amount less accumulated depreciation.
Additions to land and buildings associated with electricity distribution assets since 1 May 2001, are carried at cost less accumulated depreciation.
(g) Distinction Between Capital and Revenue Expenditure
Capital expenditure is defined as all expenditure on the creation of a new asset, and any expenditure which results in a significant improvement to the original function of an existing asset. Revenue expenditure is defined as expenditure which maintains an asset in working condition and expenditure incurred operating the Company.
(h) Depreciation
Fixed assets are depreciated on the basis of valuation or cost price less estimated residual value on a straight line basis over their estimated useful life. Rates used are:
| Buildings | 1 - 2.5% |
| Plant and equipment | 2.5 - 15% |
| Network assets | 1 - 15% |
| Furniture and fittings | 10% |
| Computer equipment | 20% |
| Motor vehicles | 5 - 30% |
(i) Taxation
Income tax expense is charged in the statement of financial performance in respect of current year’s earnings after allowing for permanent differences. Deferred taxation is determined on a comprehensive basis using the liability method. Deferred tax assets attributable to timing differences or income tax losses are only recognised where there is virtual certainty of realisation.
(j) Goods and Services Tax
These accounts are prepared exclusive of GST except for accounts receivable and accounts payable which are GST inclusive.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 3
Gazette.govt.nz —
NZ Gazette 2008, No 3
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