New Zealand Gazette – 1995 – No. 112

Page 3531

✨ Financial Statements



9 OCTOBER NEW ZEALAND GAZETTE 3531

MERCURY ENERGY LIMITED AND SUBSIDIARIES
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 1995 continued

  1. STATEMENT OF ACCOUNTING POLICIES (CONTINUED)
    Specific Accounting Policies (Continued)

    h) Leases

    The Group leases certain land and buildings. Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased assets, are included in the determination of the operating profit in equal instalments over the lease term. The cost of improvements to leasehold property is capitalised, disclosed as leasehold improvements, and amortised over the unexpired period of the lease or the estimated useful life of the improvements, whichever is the shorter.

    i) Joint Venture

    The Group is party to several joint venture arrangements. The Group has accounted for its interest in these ventures by recognising its share of revenue and expenses. There are no assets owned by the joint ventures, each party contributes its own share of assets.

    j) Other Investments

    Investments in other companies are stated at cost.

    k) Long Term Prepayments

    The Group has entered into several contracts for the supply of gas. These are recorded at cost as long term prepayments.

    Changes in Accounting Policies

    All costs incurred for the conversion of overhead lines to underground cables since 1 October 1993 have been capitalised in the current year. The net book value of the only a portion of the conversion costs were capitalised. The financial effect of this change has been the capitalisation of $11 million in costs of which $3 million relates to the prior year.

    1. NET PROFIT BEFORE TAXATION

      After Charging :

      Audit fees and expenses 95
      Depreciation 21,461
      Directors' Fees 279
      Interest 6,648
      Employee Benefits Restructuring Costs 450
      Loss on Sale of Fixed Assets 147
      Rental and Operating Leasing Costs 541

      Inter-activity interest of $27,000 -

      After Crediting :

      Investment Income

      • Short term money market 1,798
      • Rents 475
      • Other Interest Income 1,123

      Interest costs of the bid for Power New Zealand were absorbed, no income from Mercury’s stake in that company has been included in the annual results.

      7

      Total Activities
      $000



Next Page →

PDF embedding disabled (Crown copyright)

View this page online at:


VUW Te Waharoa — PDF NZ Gazette 1995, No 112


NZLII — PDF NZ Gazette 1995, No 112




✨ LLM interpretation of page content

🏭 Notes to Financial Statements of Mercury Energy Limited and Subsidiaries (continued from previous page)

🏭 Trade, Customs & Industry
Financial statements, Accounting policies, Electricity regulations, Consolidation