✨ Financial Reporting Policies
19 FEBRUARY 2008
NEW ZEALAND GAZETTE, No. 30
651
from its fair value. Fair value is determined using Optimised Deprival Value method.
Any revaluation increment or decrement is recognised in the statement of movements in equity. If the revaluation results in a revaluation deficit, the revaluation deficit is recognised in the statement of financial performance. To the extent that a revaluation reverses a previous revaluation deficit that was recognised in the statement of financial performance, such revaluation increment is recognised in the statement of financial performance.
Land and buildings other than those included in distribution assets, are stated at market valuation. (refer note 9).
All other property, plant and equipment is recorded at cost less accumulated depreciation.
Where the estimated recoverable amount of an asset is less than the carrying amount, the asset is written down. The impairment loss is recognised in the statement of financial performance.
b) Depreciation
Depreciation is provided on either a diminishing value (DV), or straight line (SL) basis on all property, plant and equipment, at rates calculated to allocate the assets’ cost or valuation less estimated residual value, over their estimated useful lives.
Main depreciation rates are:
- Substation assets 2.2 – 7.8% straight line
- Other Distribution assets 1.4 – 6.7% straight line
- Buildings 1% - 2.5% straight line and 4% diminishing value
- Leasehold Improvements 11%–31% diminishing value
- Plant and equipment 10% - 50% diminishing value
- Computer equipment 20% - 50% straight line
- Motor vehicles 20% - 25% diminishing value and 20% straight line
c) Receivables
Receivables are stated at their estimated realisable value after providing against debts where collection is doubtful.
d) Bad Debts and Doubtful Debts Provisioning
Bad Debts are identified on a counterparty by counterparty basis, and where there is reasonable doubt as to their collectability, they are written down, by way of a specific write off, to their expected net collectable amounts with the amount written off recognised as an expense in the Statement of Financial Performance.
e) Revenue recognition
Revenue comprises the amounts received and receivable for goods and services supplied to customers in the ordinary course of business.
f) Income tax
The tax expense against the surplus for the year is the estimated liability in respect of that surplus after allowance for permanent differences plus any adjustments arising from prior years.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 30
Gazette.govt.nz —
NZ Gazette 2008, No 30
✨ LLM interpretation of page content
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Electra Limited - Notes to the financial statements
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💰 Finance & RevenueAccounting policies, Property valuation, Depreciation, Receivables, Bad debts, Revenue recognition, Income tax, Electra Limited