✨ Financial Reporting Standards
4122 NEW ZEALAND GAZETTE, No. 165 3 DECEMBER 2010
component of the Statement of Comprehensive Income immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss is treated as a revaluation increase.
i) Intangible assets
Intangible assets are composed of computer software.
Intangible assets acquired separately (purchased) are reported at cost less accumulated amortisation and accumulated impairment losses. Amortisation is charged on a diminishing value basis over their useful lives. The estimated useful lives, residual value and amortisation methods are reviewed at the end of each reporting period, with the effect of any changes in estimates being accounted for on a prospective basis.
Amortisation
Amortisation rates based on remaining useful life, for major classes of asset are:
Computer software 4 to 65 years
j) Leases
Operating lease payments, where the lessors effectively retain substantially all the risks and rewards of ownership of the leased items, are included in the determination of profit before taxation in equal instalments over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
k) Property, plant and equipment
All items of property, plant and equipment are initially recognised at cost in the Balance Sheet. Cost includes the value of consideration exchanged, or fair value in the case of donated or subsidised assets, and those costs directly attributable to bringing the item to working condition for its intended use.
The gain or loss on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the profit or loss component of the Statement of Comprehensive Income.
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 services, net of GST, rebates, discounts and capital contributions.
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NZ Gazette 2010, No 165
✨ LLM interpretation of page content
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Impairment of Assets Policy
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🏭 Trade, Customs & IndustryImpairment, Recoverable amount, Fair value, Cash flows, Carrying amount, Intangible assets, Amortisation, Leases, Property, plant and equipment, Depreciation, Revenue recognition