✨ Financial Statements Notes
3186 NEW ZEALAND GAZETTE No. 101
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 1995
1. STATEMENT OF ACCOUNTING POLICIES
A. GENERAL ACCOUNTING POLICIES
These financial statements for Egmont Electricity Limited have been prepared for the purposes of the Electricity (Disclosure Requirements) Act 1994.
Reliance is placed on the fact that the Company is a going concern.
The measurement base adopted is that of historical cost except for the revaluation of certain assets. Accrual accounting is used to match expenses and revenue. The accounts have been prepared exclusive of Goods and Services Tax.
The methodology adopted for the allocation of costs, revenues, assets and liabilities has been in accordance with the Guidelines with the exception of line losses and marketing costs.
Line losses costs are allocated to the line business on the basis that the losses occur through the transportation of electricity over the line operator’s network. The line business compensates the energy business with the value of those losses which are costed at the wholesale price of electricity. The line operator recovers the cost of line losses through the customer network charge.
Marketing costs are shared between the line business and the energy business. For this financial year 28% of marketing costs were allocated to the line business. The remaining 72% of marketing costs were charged to the energy business. The allocation is made on the basis of benefits derived from expenditure on marketing related activities.
B. PARTICULAR ACCOUNTING POLICIES
The following particular accounting policies which significantly affect the measurement of profit and of financial position, have been applied:
(i) RECOGNITION OF REVENUE
Electricity sales represent customer usage during the financial period. An allowance has been included in the sales figure for unread meters as at 31 March 1995.
(ii) DEPRECIATION
Depreciation rates for major assets are as follows:-
| Rate | Basis | |
|---|---|---|
| Buildings | 1 to 2.5% | Straight Line |
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VUW Te Waharoa —
NZ Gazette 1995, No 101
NZLII —
NZ Gazette 1995, No 101
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Notes to the Financial Statements for Egmont Electricity Limited
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💰 Finance & RevenueFinancial Statements, Accounting Policies, Revenue Recognition, Depreciation, Egmont Electricity Limited