✨ Financial Statements Notes
2330 No. 82
NEW ZEALAND GAZETTE
WAITOMO ENERGY SERVICES LIMITED
Notes to the Financial Statements
For the Year Ending 31st March 1995
NOTE 1: STATEMENT OF ACCOUNTING POLICIES
GENERAL ACCOUNTING POLICIES
The general accounting policies recognised as appropriate for the measurement and reporting of earning and financial position on an historical cost basis are followed. Accrual accounting is used to match expenses with revenues. Reliance is placed on the fact that the Company is a going concern. The accounts are prepared in accordance with the Companies Act 1955 and 1993 and the Financial Reporting Act 1993.
PARTICULAR ACCOUNTING POLICIES
The following particular accounting policies which materially affect the measurement of profit and the financial position have been applied:
Debtors
Debtors are stated at their estimated realisable value.
Fixed Assets
The Company has five classes of fixed assets:
- Freehold Land
- Freehold Buildings
- Motor Vehicles, Plant and Equipment
- Distribution System
The cost value of assets transferred from the Waitomo Electric Power Board is the book value in the books of the Board as at 31st March 1993. All other assets are initially recorded at actual cost.
Statutory Base
The Company was incorporated under the Companies Act 1955 in accordance with the Energy Companies Act 1992. The assets of the Company were transferred from the Waitomo Electric Power Board in accordance with an Order in Council dated 7th May 1993. All assets were transferred at net book value as at 31st March 1993. Additional disclosures have also been made as required by the Energy Sector Reform (Transitional Provisions) Act 1993 and the Energy Companies (Information Disclosure) Regulations 1994.
Staff Leave and Gratuity Payments
Provision is made in respect of the Company’s liability for annual leave and gratuity payments. At the balance date retiring gratuities have been accrued in respect of all employees with more than 10 years service with the Company and aged 45 years or over. Gratuity payment is paid on the retirement of an employee who has at the time of retirement been currently continuously employed by the Company for a period of at least 10 years.
Depreciation
Depreciation is provided on either a straight line or a diminishing value basis on all fixed assets other than freehold land, at rates calculated to allocate the assets’ cost or valuation less estimated residual value, over their estimated useful life.
Major depreciation rates and methods:
| Asset Class | Useful Life | Method |
|---|---|---|
| Buildings and generation headworks | 40-100 years | Straight Line |
| Distribution system | 5% to 10% | Diminishing Value |
| Distribution system (pre 1987) | 20 years | Straight line |
| Motor vehicles, plant & equipment | 10% to 50% | Diminishing Value |
Inventory
Stocks are stated at the lower of cost, determined on an average cost basis, or net realisable value.
Capitalisation of Distribution Work
The Company carries out a program of patrolling each of its distribution lines and testing individual poles. Where work is carried out as a result of the program and the cost of the work is five times greater than the normal cost of maintaining the relevant segment of line, the cost is capitalised.
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VUW Te Waharoa —
NZ Gazette 1995, No 82
NZLII —
NZ Gazette 1995, No 82
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Waitomo Energy Services Limited Financial Performance Statement
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🏭 Trade, Customs & IndustryFinancial Performance, Income, Expenses, Profit, Taxation, Waitomo Energy Services