✨ Financial Accounting Policies
NGC HOLDINGS LIMITED
GAS TRANSMISSION ACTIVITIES
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 30 JUNE 2010
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 statement of comprehensive income.
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 statement of comprehensive income 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 AND INTERPRETATIONS NOT YET ADOPTED
Refer to the accounting policies in Vector Limited’s annual report for the year ended 30 June 2010 for detailed information.
APPROVAL OF FINANCIAL STATEMENTS
The financial information disclosure statements, performance measures and statistics were approved by the board of directors on 15 November 2010.
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NZ Gazette 2010, No 158
✨ LLM interpretation of page content
💰
Certification of Financial Statements for NGC Holdings Limited
(continued from previous page)
💰 Finance & Revenue15 November 2010
Financial Statements, Certification, Gas Transmissions, Disclosure, Accounting Policies, Property, Plant, Equipment, Intangible Assets, Depreciation, Leased Assets, Impairment, Receivables, Non-financial Assets
- Board of Directors