✨ Financial Accounting Policies
844 NEW ZEALAND GAZETTE, No. 37 26 FEBRUARY 2008
Goods and Services Tax (GST)
The statement of financial performance and statement of cash flows have been prepared so that all components are stated exclusively of GST. All items in the statement of financial position are stated net of GST, with the exception of receivables and payables, which include GST invoiced.
Foreign Currencies
Transactions denominated in a foreign currency are converted to New Zealand dollars at the exchange rates in effect at the date of the transaction, except when forward currency contracts have been taken out to cover short-term forward currency commitments. Where short-term forward currency contracts have been taken out, the transaction is translated at the rate contained in the contract.
Accounts Receivable
Accounts receivable are stated at expected net realisable value after providing against debts where collection is doubtful.
Employee Entitlements
Employee entitlements to salaries and wages, annual leave, long service leave and other benefits are recognised when they accrue to employees.
Fixed Assets
Initial Recording
The cost of purchased fixed assets is the value of the consideration given to acquire the assets and the value of other directly attributable costs that have been incurred in bringing the assets to the location and condition necessary for their intended service.
The cost of self-constructed assets includes the cost of all materials used in construction, costs of obtaining Resource Management Act consents, financing costs that are directly attributable to the project and an appropriate proportion of variable and fixed overheads. Costs cease to be capitalised as soon as the asset is ready for productive use and do not include any inefficiency costs.
Revaluations
Distribution system assets, excluding meter and relays, are normally revalued to depreciation replacement cost at intervals of three years. A revaluation was undertaken as at 31 March 2007. The next revaluation is anticipated to occur in the year ending 31 March 2008. Land and buildings of the company were revalued as at 31 March 2007. The next revaluation is anticipated to occur in the year ending 31 March 2010.
Impairment
Annually, the Directors assess the carrying value of major assets. Where the estimated recoverable amount of the asset is less than its carrying amount, the asset is written down. The impairment, if any, is recognised in the statement of financial performance.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 37
Gazette.govt.nz —
NZ Gazette 2008, No 37
✨ LLM interpretation of page content
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Statement of Accounting Policies for Counties Power Limited – Lines Business
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💰 Finance & Revenue26 February 2008
Accounting Policies, Financial Statements, Counties Power Limited, Electricity, Historic Cost Basis, GST, Foreign Currencies, Accounts Receivable, Employee Entitlements, Fixed Assets, Revaluations, Impairment