✨ Financial Statements Notes
4 MARCH 2008 NEW ZEALAND GAZETTE, No. 50 1411
TOP ENERGY LIMITED-LINE BUSINESS
NOTES TO THE FINANCIAL STATEMENTS
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 2007
3 Taxation
The taxation charged against the profit for the year is both the current year's provision and the income tax
effects of timing differences calculated using the liability method.
Tax effect accounting is applied on a comprehensive basis to all timing differences. Future taxation
benefits attributable to timing differences or to losses carried forward are recognised in the financial
statements only where there is virtual certainty that the benefit of the losses will be utilised by the
Company.
4 Accounts Receivable
Accounts receivable are stated at estimated realisable value after providing against debts where collection
is doubtful.
5 Property, Plant & Equipment
Property, plant & equipment held by the former Bay of Islands Electric Power Board were vested in the
Company, Top Energy Ltd, on 1 May 1993 under the Energy Companies Act 1992. Property, plant &
equipment were vested at book value as at 1 May 1993, and represent "cost" to the Company.
The cost of property, plant & equipment purchased after 1 May 1993 is the value of the consideration
given to acquire the assets and the value of other directly attributable costs which 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, direct labour on
the project, costs of obtaining Resource Management Act consents 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 cost.
The Distribution system asset has been valued to depreciated replacement cost at 31 March 2007 based on
a valuation conducted by Sinclair, Knight and Mertz Ltd, registered valuers. The Distribution system asset
is valued on a 3 - 5 year cycle.
Capital work-in-progress includes materials, and a portion of direct labour and production overhead
appropriate to the stage of completion attained.
Land and Buildings relating to substations are "owned" by the lines business. These have been valued to
fair value at 31 March 2004 based on a valuation conducted by Telfer Young Ltd, registered valuers.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 50
Gazette.govt.nz —
NZ Gazette 2008, No 50
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Notes to Financial Statements of Top Energy Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial statements, Accounting policies, Taxation, Accounts receivable, Property, Plant & Equipment, Top Energy Limited