New Zealand Gazette – 2008 – No. 55

Page 1548

✨ Financial Statements



Eastland Network Limited – Electricity Lines Business

Statement of Significant Accounting Policies continued

(C) Property, plant and equipment (continued)

Network assets are stated at valuation as determined, on a cyclical basis not exceeding five years. The basis of valuation is optimised depreciated replacement cost, as reviewed by an independent engineering consultant.

Any surplus on revaluation is transferred directly to equity unless it offsets a previous decrease in value recognised in the statement of financial performance, in which case it is recognised in the statement of financial performance. A decrease in value is recognised in the statement of financial performance where it exceeds the surplus previously transferred to equity.

Disposal of Property, plant and equipment

Where property, plant and equipment is disposed of, the profit or loss recognised in the statement of financial performance is calculated as the difference between the sale price and the carrying value of the property, plant & equipment.

Depreciation

Depreciation is calculated on a straight line basis to allocate the cost or revalued amount of an asset, less any residual value, over its useful life.

Major depreciation periods are:

  • Buildings 40 - 100 years
  • Distribution system 10 - 60 years
  • Motor Vehicles 5 - 10 years
  • Computer Equipment & Software 3 - 5 years
  • Plant & Equipment 5 - 15 years

(D) Receivables

Receivables are stated at estimated realisable value after providing against debts where collection is doubtful.

(E) Taxation

Income Tax

The income tax expense charged to the statement of financial performance includes both the current year's provision and the income tax effect of timing differences 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 only recognised if there is virtual certainty of realisation.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2008, No 55


Gazette.govt.nz — PDF NZ Gazette 2008, No 55




✨ LLM interpretation of page content

🏭 Eastland Network Limited – Electricity Lines Business (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Accounting Policies, Commerce Commission, Electricity Information Disclosure Requirements