New Zealand Gazette – 1995 – No. 82

Page 2312

✨ Financial Statements



NEW ZEALAND GAZETTE

No. 82

NORTHPOWER LIMITED

STATEMENT OF ACCOUNTING POLICIES

For The 12 Months Ended 31 March 1995

Reporting Entity

Northpower Ltd is a public company formed under the Energy Companies Act 1992 and registered under the Companies Act 1955.

The financial statements have been prepared in accordance with the Financial Reporting Act 1993.

General Accounting Policies

The general accounting policies recognised as appropriate for the measurement and reporting of results, cashflows and financial position under the historical cost method, as modified by the revaluation of land and buildings, have been followed in the preparation of these financial statements. Reliance is placed on the fact that the Company is a going concern. Accrual accounting is used to match expenses and revenue.

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

Particular Accounting Policies

The following particular accounting policies, which significantly affect the measurement of profit and of financial position, have been applied:

(i) Sales

Sales shown in the profit and loss account comprise the amounts received and receivable by the Company for goods and services supplied to customers in the ordinary course of business. Sales are stated exclusive of Goods and Services Tax collected from customers.

(ii) Investments

Investments are stated at cost.

(iii) Cost of Fixed Assets

The cost of purchased fixed assets is the value of the consideration given to acquire the assets and the value of other directly attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended service.

The cost of assets constructed by the Company includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of production overhead. Costs cease to be capitalised as soon as the asset is ready for productive use.

Land and buildings are valued by independent registered valuers on a three-yearly basis. The basis of the valuation is net current value.

(iv) Depreciation

Depreciation is charged on a straight line basis so as to write off the cost or valuation of the fixed assets to their estimated residual value over their expected economic lives. The estimated economic lives are as follows:

  • Distribution system ... 5-30 years
  • Buildings ... 50 years
  • Motor vehicles ... 5 years
  • Plant and equipment ... 5-10 years


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🏭 Disclosure of Financial Statements for Northpower Limited (continued from previous page)

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Financial Statements, Electricity, Northpower Limited, Disclosure