Financial Statements




25 AUGUST NEW ZEALAND GAZETTE 2463

Expenditure

The expenditure shown in the Profit and Loss Account is derived as follows:

  • National Grid Transmission charges, operating costs, interest and depreciation are directly attributable to the Line Business.

  • Overheads relating to Corporate Services are allocated on the basis of the relative net asset values.

  • Overheads relating to Engineering Services are allocated on the basis of the relative book values of the Line Business’ fixed assets.

Taxation

The taxation charge against the profit for the year is the estimated liability in respect of that profit after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. The Company follows the liability method, partial basis, of accounting for deferred taxation.

Future tax benefits attributable to tax losses or timing differences are only recognised when there is virtual certainty of realisation.

The taxation charge has been allocated on the basis of the Line Business’ contribution to the Company’s net profit before taxation.

Accounts Receivable

Accounts receivable are valued at net realisable value.

Accounts receivable shown in the Balance Sheet are those which are directly attributable to the Line Business.

Stock

Stock is valued at cost determined by the last purchase price.

The stock shown in the Balance Sheet is that which is directly attributable to the Line Business.

Other Current Assets

The other current assets shown in the Balance Sheet comprise cash and other current assets. These have been allocated on the basis of the relative working capital levels and an equal share basis respectively.

Current Liabilities

The current liabilities shown in the Balance Sheet include those which are directly attributable to the Line Business and an allocation of Corporate Services and Engineering Services current liabilities. These have been allocated on an equal share to each activity basis and on the relative net book values of fixed assets respectively.

Investments

Investments are recorded at cost.



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🏭 Central Electric Limited Financial Certification (continued from previous page)

🏭 Trade, Customs & Industry
31 July 1995
Electricity, Financial Statements, Expenditure, Taxation, Accounts Receivable, Stock, Investments