✨ Financial Statements Notes
2262
NEW ZEALAND GAZETTE
No. 82
ALPINE ENERGY LIMITED
NOTES TO AND FORMING PART OF THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 1995
- STATEMENT OF ACCOUNTING POLICIES
These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1994.
The Company is principally involved with the reticulation of electrical energy throughout the South Canterbury region. (The energy trading part of the business was sold to United Electricity Limited effective 1 February 1994). Activities referred to in Regulation 6, subclause (3) carried on by the Company, involve less than five percent of the assets of the Company. These financial statements include those activities.
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.
The financial statements have been prepared on the basis of historical cost.
(a) Consumer Contributions
Contributions from consumers in relation to the construction of new lines for the network are accounted for as income in the year in which they are received.
(b) Capital and Operating Expenditure
Capital expenditure relates to expenditure incurred in the creation of a new asset and expenditure incurred on existing reticulation system assets to the extent the system is enhanced.
Operating expenditure relates to expenditure which restores an asset closer to its original condition and includes expenditure incurred in maintaining and operating the fixed assets of the Company.
(c) Depreciation
Depreciation is charged in accordance with rates determined by the Inland Revenue Department as follows:
Globo Distribution System 5% on net book value 1/4/87
Buildings 1 to 2.5% of cost
Motor Vehicles 20 to 25% on diminishing value
Distribution Plant & Office Equipment 10 to 50% on diminishing value
Depreciation for taxation purposes recognises that:
- Additions to the distribution system exclude any allocation of indirect costs.
- Only 80% of the book value of the distribution system at 1 April 1987 is depreciable.
(d) Taxation
The taxation charge is the estimated liability payable in respect of the accounting profit for the year, adjusted for non assessable income and non deductible costs and including any adjustments in respect of prior years. Deferred taxation is not recognised as the timing differences are not expected to reverse within the foreseeable future.
(e) Accounts Receivable
Accounts receivable are stated at estimated realisable value after making provision for doubtful debts. Bad debts are written off during the period in which they are identified.
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VUW Te Waharoa —
NZ Gazette 1995, No 82
NZLII —
NZ Gazette 1995, No 82
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Alpine Energy Limited Financial Statements
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🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Alpine Energy Limited, South Canterbury, Electricity Regulations