New Zealand Gazette – 1994 – No. 128

Page 3826

✨ Financial Statements



3826
NEW ZEALAND GAZETTE
No. 128

FINANCIAL STATEMENTS

STATEMENT OF ACCOUNTING POLICIES

These financial statements are presented in accordance with the requirements of the Electricity (Information Disclosure) Regulations 1994. The financial statements are for the Electricity Corporation of New Zealand Limited (the “Corporation”), as defined in Regulation 4 of the Electricity (Information Disclosure) Regulations 1994 (the “Regulations”).

(a) Constitution, ownership and activities

The Corporation was incorporated on 26 February 1987, pursuant to the State-Owned Enterprises Act 1986, and commenced business on 1 April 1987. With effect from that date the Corporation acquired under a sale and purchase agreement with Her Majesty the Queen in Right of New Zealand (the “Crown”) the electricity generation and transmission business of the Electricity Division of the Ministry of Energy. The assets and liabilities acquired by the Corporation with effect from 1 April 1987 were recorded in the opening balance sheet at values stated within the sale and purchase agreement.

The Corporation is wholly-owned by the Crown.

The Corporation’s business is primarily the generation and wholesale marketing of electricity.

(b) Generation and supply of electricity activities

To comply with the Regulations the Corporation has consolidated the following entities involved in the generation and supply of electricity: ECNZ Parent (excluding Brightspot and Appliance Wholesale divisions), Rutherford House Limited and ECNZ Insurance Limited.

Entities which are not involved in the generation and supply of electricity have not been consolidated and are accounted for using the cost method. These subsidiaries are referred to as non-core business activities. The activities and balances that relate to non-core business activities have been separately identified in these financial statements and consist of:

  • Dividends from non-core business activities
  • Interest from non-core business activities
  • Investments in non-core business activities
  • Advances to non-core business activities

(c) General accounting policies

The general accounting policies recognised as appropriate for the measurement and reporting of results and the financial position have been followed in the preparation of these financial statements. No statement of cashflows is required by the Regulations.

The historical cost method, as modified by the revaluation of certain assets, has been followed.

(d) Specific accounting policies

The following accounting policies, which significantly affect the measurement of financial performance and of financial position, have been consistently applied:

(i) Sales

Sales shown in the statement of financial performance comprise the amounts received and receivable by the Corporation for electricity supplied to customers in the ordinary course of business. Sales are stated exclusive of Goods and Services Tax collected from customers.



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🌾 Electricity Corporation of New Zealand Limited Financial Statements (continued from previous page)

🌾 Primary Industries & Resources
Financial statements, Accounting policies, Electricity, ECNZ