✨ Financial Statements Notes
3144
NEW ZEALAND GAZETTE
No. 100
CITIPOWER LIMITED
Notes to the Financial Statements for the 12 months ended 31 March 1995.
1. REPORTING ENTITY
The principal activity of Citipower Limited is electricity supply.
The Company has a 10 year lease of the distribution system from Nelson City Council from 1st December 1991.
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
Historical cost is the purchase price paid to Nelson City Council per the valuations undertaken by Duke & Cooke Limited for Land & Buildings and Darroch & Co Limited for Plant & Equipment. Depreciation is provided on a straight line and diminishing value 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:
Freehold Buildings 40 years
Plant and Equipment 10 % DV
Office Equipment 20 % DV
Furniture and Fittings 20 % DV
Motor Vehicles 20 % DV
(c) Accounts receivable have been valued at expected net realisable value.
(d) Stock and work in progress are valued at the lower of cost and net realisable value.
(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. Citipower 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
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Notes to the Financial Statements for the 12 months ended 31 March 1995
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Citipower Limited, Electricity Supply, Nelson City Council