New Zealand Gazette – 1995 – No. 101

Page 3267

✨ Financial Methodology



18 SEPTEMBER
NEW ZEALAND GAZETTE
3267

3. METHODOLOGY FOR ALLOCATION OF COSTS, REVENUES, ASSETS AND LIABILITIES

The methodology that Tasman Energy Limited has used for the allocation of costs, revenues, assets and liabilities between its line and other businesses differs in some respects from the methodology described in the Electricity Disclosure Guidelines. These differences are described in the following paragraphs.

Costs, revenue, assets and liabilities which could not be directly allocated have been allocated on the following bases:

Base Items allocated on this basis
Revenue • Contracting division overhead costs (including advertising and promotions, building and land occupation costs, general office expenses, professional fees, repairs and maintenance)
Purchase plus overheads excluding depreciation • Contracting division inventory
• Accounts payable
Indirect employment costs • Contracting division employee leave provisions
• Restructuring provisions
Depreciation expense • Contracting division fixed assets
Staff numbers in each business • Head office overheads (including property, information systems, group management, accounting and administration)
1995/96 budgeted revenue • Electricity sales

In determining how the following costs, and assets are to be allocated, Tasman Energy has used the avoided cost principle:

  • contracting division depreciation and indirect employment costs
  • electricity sales overheads (including advertising, depreciation, employment costs, office expenses, repairs and maintenance)
  • marketing overheads
  • fixed assets

An assessment was made of the costs that would be avoided by Tasman Energy should the company cease to carry on all activities other than the line business. These



Next Page →

PDF embedding disabled (Crown copyright)

View this page online at:


VUW Te Waharoa — PDF NZ Gazette 1995, No 101


NZLII — PDF NZ Gazette 1995, No 101




✨ LLM interpretation of page content

💰 Methodology for Allocation of Costs, Revenues, Assets and Liabilities

💰 Finance & Revenue
Cost Allocation, Revenue Allocation, Asset Allocation, Liability Allocation, Electricity Disclosure Guidelines, Tasman Energy Limited