✨ Financial Statements
4356 NEW ZEALAND GAZETTE, No. 179 4 DECEMBER 2009
Depreciation of property, plant and equipment
Depreciation is calculated on a straight-line basis for network systems and on diminishing value for all other assets, to write off the cost of the assets over the useful lives of the assets.
Depreciation rates based on remaining useful life, for major classes of asset are:
| Plant and equipment | 5 to 10 years |
| Network systems | 10 to 65 years |
l) Revenue recognition
Revenue is recognised at the fair value of sales of goods and services, net of GST, rebates, discounts and capital contributions.
Revenue from services is recognised in the accounting period in which the services are rendered based upon usage or volume throughput during that period.
m) Contributed capital
Contributed capital represents the funds provided by Powerco Limited to the Powerco gas division.
n) Taxation
The amount recognised for current tax is based on the net profit for the period as adjusted for non-assessable and non-deductible items. It is calculated using tax rates that have been enacted or substantively enacted by the reporting date.
Deferred income tax is provided, using the Balance Sheet liability method, on all temporary differences at the Balance Sheet date between the tax base of the assets and liabilities and their carrying amounts in the Financial Statements.
The following temporary differences are not provided for: goodwill; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit; and the temporary differences relating to investments in subsidiaries where the Division is able to control the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future.
The carrying amount of deferred income tax assets is reviewed at each Balance Sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax to be utilised.
Deferred income tax assets and liabilities are measured at tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the Balance Sheet date.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow the manner in which the Division expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Division entity intends to settle its current tax assets and liabilities on a net basis.
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NZ Gazette 2009, No 179
✨ LLM interpretation of page content
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Director's Certificate for Gas Information Disclosure
(continued from previous page)
🏭 Trade, Customs & Industry4 December 2009
Financial Statements, Impairment Testing, Goodwill, Intangible Assets, Amortisation, Leases, Property Plant and Equipment, Depreciation, Revenue Recognition, Contributed Capital, Taxation