New Zealand Gazette – 1995 – No. 82

Page 2294

✨ Financial Statements Notes



2294 NEW ZEALAND GAZETTE No. 82

MARLBOROUGH ELECTRIC LIMITED

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

For the year ended 31 March 1995.

1. STATEMENT OF ACCOUNTING POLICIES

A. REPORTING ENTITY

Marlborough Electric Limited is a public company registered under the Companies Act 1955 and established pursuant to the Energy Companies Act 1992.

The Company undertakes the business of electricity acquisition, generation, reticulation and supply and the retailing of home appliances in the Marlborough region.

These financial statements have been prepared in accordance with the requirements of Regulation 6 of the Electricity (Information Disclosure) Regulations 1994.

The financial statements comprise separate profit and loss statements and balance sheets for the Monopoly Business (Network Operator), the Generation Business and the Competitive Business (Energy Trading, Appliance Trading and Contracting).

B. MEASUREMENT BASE

The accounting principles recognised as appropriate for the measuring and reporting of financial performance and financial position on an historic cost basis have been followed by the Company in the preparation of these financial statements. Reliance is placed on the fact that the Company is a going concern and accrual accounting is used to match revenue and expenses.

C. ACCOUNTING POLICIES

  1. Capital Expenditure

    Decisions relating to the expensing or capitalising of reticulation expenditure are made in accordance with the rules provided by the Inland Revenue Department. Expenditure incurred on existing reticulation assets is capitalised to the extent that the system is enhanced. Full depreciation accounting is used.

  2. Valuation of Assets

    • Inventories are valued on the basis of the lower of cost or net realisable value. Cost is calculated on the basis of weighted average cost. Due allowance is made for damaged and obsolete inventory.
    • Work in progress comprises the cost of direct materials and labour together with chargeable overheads.
    • Land is stated at cost.
    • Fixed assets are stated at cost. The fixed assets of the Marlborough Electric Power Board were vested in Marlborough Electric Limited on 1 May 1993 at their then current carrying value.
    • Accounts receivable are stated at the amount they are expected to realise.
    • Capital contributions are credited against the value of the reticulation assets.


Next Page →

PDF embedding disabled (Crown copyright)

View this page online at:


VUW Te Waharoa — PDF NZ Gazette 1995, No 82


NZLII — PDF NZ Gazette 1995, No 82




✨ LLM interpretation of page content

💰 Notes to Financial Statements of Marlborough Electric Limited (continued from previous page)

💰 Finance & Revenue
3 August 1995
Financial Statements, Accounting Policies, Electricity, Marlborough