New Zealand Gazette – 1995 – No. 118

Page 3696

✨ Financial Accounting Policies



NEW ZEALAND GAZETTE

No. 118

THE POWER COMPANY

LINES BUSINESS

STATEMENT OF ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 MARCH 1995

1.0 GENERAL ACCOUNTING POLICIES

The general policies adopted in the preparation of these financial statements are:

  • Unless otherwise stated, the measurement base adopted is historical cost.
  • Reliance is placed on the assumption that the Company is a going concern.
  • Accrual accounting is used to match revenues with related expenses.

2.0 SPECIAL PURPOSE FINANCIAL STATEMENTS

These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1994 ("the regulations").

These financial statements relate to the Company’s Line Business incorporating the conveyance of electricity, ownership of works for conveyance of electricity and provision of line function and street lighting services in accordance with Section 6 of the Regulations.

Activities as defined in Section 6(3) of the Regulations are undertaken but have not been separated from the Line Business Financial Statements. Section 6(6) allows for inclusion of such activities in the Line Business financial statements if these activities involve less than 5% of the total assets of the line owner. In The Power Company’s case Section 6(6) applies.

As this is the first year that the Regulations have been in effect, comparative information is not available and therefore no comparative information has been prepared.

3.0 PARTICULAR ACCOUNTING POLICIES

The Power Company’s 25% interest in United Electricity Limited has been excluded from these accounts. The interest in PowerNet Limited has been accounted for on a line by line consolidation of revenue and expenses after the elimination of all significant inter-company transactions. Metering Systems Limited is a wholly owned subsidiary of The Power Company which specialises in high tech meter systems. Metering Systems Limited has been accounted for on a consolidation basis using the purchase method.



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🏭 Statement of Accounting Policies for The Power Company Limited (continued from previous page)

🏭 Trade, Customs & Industry
Accounting Policies, Financial Statements, Line Business, Electricity, Regulations