New Zealand Gazette – 2008 – No. 49

Page 1379

✨ Financial Accounting Policies



4 MARCH 2008 NEW ZEALAND GAZETTE, No. 49 1379

Disposal of Property, Plant and Equipment

When an item of property, plant or equipment is disposed of, any gain or loss is recognised in the Statement of Financial Performance and is calculated as the difference between the sale price and the carrying value of the asset.

The carrying values of property, plant and equipment do not exceed their estimated recoverable value.

Depreciation

Depreciation of property, plant and equipment, other than freehold land, is calculated on a straight line basis so as to expense the cost of the assets, or the revalued amounts, to their residual values over their useful lives as follows:

Estimated useful lives

  • Buildings 50 - 100 years
  • Office and computer equipment 5 - 15 years
  • Distribution system 0 - 70 years
  • Motor vehicles 3 - 15 years
  • GIS 10 years
  • Plant, equipment and tools 5 - 10 years

Subsequent Expenditure

Subsequent expenditure relating to an item of property, plant and equipment is added to its gross carrying amount when such expenditure either increases the future economic benefits beyond its existing service potential, or is necessarily incurred to enable future economic benefits to be obtained, and that the expenditure would have been included in the initial cost of the item had the expenditure been incurred at that time.

Capitalisation

Capital expenditure is defined as all expenditure incurred in the creation of a new asset, replacement of an asset that has reached the end of its economic life, or increased service potential of an existing asset. Constructed assets are included in property, plant and equipment as each becomes operational and available for use.

Employee Entitlements

A liability for annual leave, long service leave and retirement gratuities is accrued and recognised in the Statement of Financial Position. Liabilities for annual and long service leave are calculated on an entitlement basis at current rates. Retirement gratuity liability is calculated using current rates and appropriate probabilities.

Investments

All investments are stated at cost price and then adjusted to account for amortisation of premiums or discounts to face value.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2008, No 49


Gazette.govt.nz — PDF NZ Gazette 2008, No 49




✨ LLM interpretation of page content

🏭 Certification of Financial Statements by Centralines Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial statements, Accounting policies, GST, Receivables, Inventories, Property valuation, Asset revaluation

🏭 Disposal of Property, Plant and Equipment

🏭 Trade, Customs & Industry
Asset disposal, Financial performance, Carrying value, Recoverable value

🏭 Depreciation of Property, Plant and Equipment

🏭 Trade, Customs & Industry
Depreciation, Straight line basis, Useful lives, Buildings, Office equipment, Distribution system, Motor vehicles, GIS, Plant equipment

🏭 Subsequent Expenditure on Property, Plant and Equipment

🏭 Trade, Customs & Industry
Subsequent expenditure, Economic benefits, Service potential, Capital expenditure

🏭 Capitalisation of Expenditure

🏭 Trade, Customs & Industry
Capital expenditure, New assets, Asset replacement, Service potential, Constructed assets

🏭 Employee Entitlements

🏭 Trade, Customs & Industry
Employee entitlements, Annual leave, Long service leave, Retirement gratuities, Statement of Financial Position

🏭 Investments Accounting

🏭 Trade, Customs & Industry
Investments, Cost price, Amortisation, Premiums, Discounts, Face value