✨ Financial Accounting Policies
7 MARCH 2008 NEW ZEALAND GAZETTE, No. 55 1547
Eastland Network Limited – Electricity Lines Business
Statement of Significant Accounting Policies continued
(B) Basis of Recognising Components of the Financial Statements
(continued)
Liabilities
A transaction results in a liability being recognised in the statement of financial position when it will probably give rise to the need for the Electricity Lines Business to sacrifice assets in the future, and those sacrifices can be measured with reliability.
Revenue
Revenue is recognised in the statement of financial performance when a transaction gives rise to an increase in the value of the Electricity Lines Business’s net assets, and that increase can be measured with reliability.
Expenses
An expense is recognised in the statement of financial performance when a transaction results in a decrease in the value of the Electricity Lines Business’s net assets, and that decrease can be measured with reliability.
Classification of assets and liabilities between current and non-current
An amount is classified as current when it is expected to be settled or extinguished within one year of the date of the financial statements. All other amounts are classified as non-current.
(C) Property, plant and equipment
Owned Assets
Property, Plant & equipment is initially stated at cost and depreciated as outlined below. Where appropriate, the cost of property, plant & equipment includes site preparation costs, installation costs, and the cost of obtaining resource consents.
Leased Assets
Leases in terms of which the Electricity Lines Business assumes substantially all the risks and rewards of ownership are classified as finance leases. Assets of the Electricity Lines Business acquired by way of finance lease are stated at an amount equal to the present value of the future minimum lease payments, and are depreciated as outlined below.
Revaluations
Land and buildings are stated at valuation as determined, on a cyclical basis not exceeding three years by an independent valuer. The basis of valuation is market value less the estimated costs of disposal. The valuation is based on assessment of the highest and best use, which is equivalent to existing use.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 55
Gazette.govt.nz —
NZ Gazette 2008, No 55
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Eastland Network Limited – Electricity Lines Business
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