✨ Financial Statements Notes
3124
NEW ZEALAND GAZETTE
No. 100
CAPITAL POWER LIMITED
Notes to the Financial Statements for the 12 months ended 31 March 1995.
1. REPORTING ENTITY
Capital Power Limited is a company registered under the Companies Act 1993 and an energy company in terms of the Energy Companies Act 1992.
2. STATEMENT OF ACCOUNTING POLICIES
GENERAL ACCOUNTING POLICIES
The financial statements have been prepared in accordance with Regulation 6 of the Electricity (Information Disclosure) Regulations 1994. The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on a historical cost basis are followed.
PARTICULAR ACCOUNTING POLICIES
The following Particular Accounting Policies which significantly affect the measurement of financial performance and financial position have been applied.
(a) Income Recognition
Electricity sales represent customer usage during the financial period. An allowance has been made in the sales of electricity for unbilled sales (unread meters and unbilled line charges) as at 31 March 1995.
(b) Fixed Assets
All fixed assets are initially recorded at cost. Fixed assets include direct costs attributable to their construction plus the cost of capitalised overheads.
Depreciation is provided on a straight line basis on all tangible fixed assets other than freehold land, at rates calculated to allocate the assets' cost over their estimated useful lives.
Major depreciation periods are:
Distribution Equipment 25 to 40 years
Freehold Buildings 50 years
Motor Vehicles, Plant and Equipment 3-5 years
Computer Hardware and Software 3-5 years
Contributions by developers towards fixed assets are recognised as revenue in the year received.
(c) Accounts receivable have been valued at expected net realisable value.
(d) Stocks and work in progress are valued at the lower of cost or net realisable value on a weighted average basis.
(e) Investments have been valued at cost.
(f) Income tax
The taxation charge for the year is the estimated liability in respect of any assessable income, after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. Capital Power Limited follows the liability method of accounting for deferred taxation. Future taxation benefits attributable to losses carried forward are recognised in the statements only where there is virtual certainty that the benefit of the losses will be utilised.
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VUW Te Waharoa —
NZ Gazette 1995, No 100
NZLII —
NZ Gazette 1995, No 100
✨ LLM interpretation of page content
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Notes to the Financial Statements for Capital Power Limited
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🌾 Primary Industries & ResourcesFinancial Statements, Accounting Policies, Electricity, Capital Power Limited, Income Recognition, Fixed Assets, Depreciation, Accounts Receivable, Stocks, Work in Progress, Investments, Income Tax