New Zealand Gazette – 1995 – No. 108

Page 3447

✨ Financial Statements Notes



29 SEPTEMBER NEW ZEALAND GAZETTE

3447

Wairarapa Electricity Limited and Subsidiary Companies

Notes to the Accounts

1. Statement of Accounting Policies

The financial statements presented here are for the reporting entity Wairarapa Electricity Limited and the consolidated financial statements of the group comprising Wairarapa Electricity Limited and its subsidiaries.

The financial statements have been prepared in accordance with the requirements of the Companies Act 1955, as amended by the Companies Amendment Act 1993, the Financial Reporting Act 1993 and the Electricity (Information Disclosure) Regulations 1994.

The financial statements have been prepared on the basis of historical cost with the exception of certain items for which certain specific accounting policies are identified.

(i) Principles of Consolidation

The consolidated financial statements include those of the holding company and its subsidiaries accounted for using the purchase method. All intercompany balances and unrealised profits and losses on transactions between group companies have been eliminated.

(ii) Investments

Investments have been brought into account as follows:

  • The holding company’s investment in shares of its subsidiaries is stated at cost.
  • Investment in shares in non listed companies are reflected at cost.

(iii) Inventories

Inventories are stated at the lower of cost and net realisable value. Costs have been assigned to inventory quantities on hand at balance date using weighted average cost.

(iv) Receivables

Trade, Non-Trade and Hire Purchase receivables are stated at their net estimated realisable value. Hire Purchase receivables include unearned interest. An adjustment has been made at year end for unearned interest on hire purchase transactions according to the ‘Rule of 78’.

An estimate is made for doubtful debts based on a review of all outstanding amounts at year end. Bad debts are written off in the period in which they are identified.

(v) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation where applicable. Depreciation is provided on all tangible fixed assets, other than freehold land and the distribution system.

Depreciation is provided using rates which write off assets over their expected useful lives as below:

  • Buildings: 40 - 100 years
  • Generation: 10 - 40 years
  • Plant and equipment: 5 - 10 years
  • Motor vehicles: 4 - 5 years


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✨ LLM interpretation of page content

💰 Notes to the Accounts of Wairarapa Electricity Limited and Subsidiary Companies (continued from previous page)

💰 Finance & Revenue
Accounting Policies, Consolidation, Investments, Inventories, Receivables, Fixed Assets, Depreciation