✨ Financial Accounting Policies
Network Waitaki Limited Line Business
Statement of Accounting Policies (Continued)
Gains and Losses
Disposal of Property, Plant and Equipment are taken into account in determining the operating result for the year.
Accounts receivable
Accounts receivable are shown at expected realisable value after providing for doubtful debts.
Inventories
Inventories are valued at the lower of cost or net realisable value. Serial numbered stock is recorded at the appropriate individual value, while other stock is recorded at weighted average cost.
Goods and Services Tax (GST)
The statements 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.
Income tax
Income tax expense has been calculated using the liability method. Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is recognised only if there is virtual certainty of realisation.
Investments
All Investments are stated at cost.
Capital Contributions
Contributions received toward capital works are recorded in the statement of financial performance and shown as income earned in the year in which they are received.
Financial Instruments
Financial Instruments carried on the statement of financial position include cash and bank balances, investments, receivables, trade creditors and borrowings. The particular recognition methods adopted are disclosed in individual policy statements associated with each item. Network Waitaki Limited has no off balance sheet exposure.
Statement of Cash Flows
The following are definitions of terms used in the statement of cash flows:
Operating activities include all transactions and other events that are not investing or financing activities.
Investing activities are those activities relating to the acquisition, holding and disposal of Property, Plant and Equipment and of investments. Investments can include securities not falling within the definition of cash.
Financing activities are those activities that result in changes in the size and composition of the capital structure. These include both equity and debt not falling within the definition of cash.
Cash is considered to be cash on hand and current accounts in banks, net of bank overdrafts.
Changes in Accounting Policy:
There have been no changes in accounting policies.
Methodology of Separation of Business:
The basis of allocation adopted is the avoidable cost methodology.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 4
Gazette.govt.nz —
NZ Gazette 2008, No 4
✨ LLM interpretation of page content
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Network Waitaki Limited Statement of Accounting Policies
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🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Revenue, Depreciation, Property, Plant & Equipment, Network Waitaki Limited