✨ Accounting Policies Statement
NGC HOLDINGS LIMITED
GAS TRANSMISSION ACTIVITIES
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 30 JUNE 2009
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
F) PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Uninstalled property, plant and equipment are stated at the lower of cost and estimated recoverable amount. Estimated recoverable amount is the greater of the estimated amount from the future use of the property, plant and equipment and its ultimate disposal, and its fair value less costs to sell.
Property, plant and equipment is subsequently measured at cost less accumulated depreciation and impairment losses.
Subsequent expenditure relating to an item of property, plant and equipment is added to its gross carrying amount when such expenditure can be measured reliably and 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 expenditure would have been included in the initial cost of the item had the expenditure been incurred at that time. The costs of day-to-day servicing of property, plant and equipment are recognised in the income statement as incurred.
G) IDENTIFIABLE INTANGIBLE ASSETS
Software
Software that is not integral to the functionality of the related hardware is classified as an intangible asset. It is amortised on a straight line basis over its useful life, commencing on the date it is brought for use. Software assets which are integral to the operation of the related hardware are classified as computer equipment within property, plant and equipment. Software intangible assets have a useful life of between 2 and 10 years.
H) 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 property, plant and equipment, less any expected residual value, to the income statement over its useful economic life.
Depreciation commences when the item of property, plant and equipment is brought into productive use, or when such items become available for use.
| ESTIMATED USEFUL LIVES YEARS | |
|---|---|
| Pipelines, compressors and gate stations | 35 – 65 |
| Plant, vehicles and equipment | 3 – 40 |
| Buildings | 40 – 100 |
I) LEASED ASSETS
Finance leases
Property, plant and equipment under finance leases, where substantially all the risks and rewards of ownership are assumed by gas transmission activities as lessee, are recognised as non-current assets in the balance sheet. Leased property, plant and equipment are recognised initially at the lower of the present value of the minimum lease payments or their fair value. A corresponding liability is established and each lease payment apportioned between the reduction of the outstanding liability and the finance expense. The finance expense is charged to the income statement in each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased property, plant and equipment are depreciated over the shorter of the lease term and the useful life of equivalent owned property, plant and equipment.
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NZ Gazette 2009, No 173
✨ LLM interpretation of page content
💰
Statement of Accounting Policies for NGC Holdings Limited
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Financial Disclosure, Gas Transmission, NGC Holdings Limited