✨ Financial Statement Accounting Policies
NGC HOLDINGS LIMITED
GAS TRANSMISSION ACTIVITIES
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 30 JUNE 2009
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M) IMPAIRMENT (CONTINUED)
Impairment of receivables
The carrying amount of the receivables is compared to the recoverable amount which is amortised cost. Amortised cost is estimated as the present value of estimated future cash flows. Long term receivables are discounted to reflect the time value of money. An impairment loss is recognised if the carrying amount of a receivable or grouping of similar receivables exceeds its recoverable amount. Receivables with a short duration are not discounted.
For trade receivables which are not significant on an individual basis, collective impairment is assessed on a portfolio basis based on numbers of days overdue, and taking into account previous experience of doubtful or delayed collection of debts on portfolios with a similar amount of days overdue.
Impairment of non-financial assets
The carrying amounts of the non-financial assets, other than inventories and deferred tax assets, are reviewed at each balance date to determine whether there is any indication of impairment. If any such indication exists then the asset's carrying amount is compared to its recoverable amount to determine the level of impairment if any.
An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognised in the income statement.
The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Impairment losses recognised in prior periods are assessed at each balance date for any indications that the loss has decreased or no longer exists. An impairment loss may be reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed to the income statement only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation and amortisation, if no impairment loss had been recognised.
NEW STANDARDS EARLY-ADOPTED
Refer to the accounting policies in Vector Limited's annual report for the year ended 30 June 2009 for detailed information.
APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved by the board of directors on 23 November 2009.
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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, Impairment, Receivables, Non-financial Assets
💰 Approval of Financial Statements for NGC Holdings Limited
💰 Finance & Revenue23 November 2009
Financial Statements, Board Approval, NGC Holdings Limited
- Board of Directors, NGC Holdings Limited