✨ Accounting Policies Statement
NEW ZEALAND GAZETTE
No. 86
Statement of Accounting Policies
Reporting Entity
Southpower Limited is a company registered under the Companies Act 1955.
Measurement Base
The accounting principles recognised as appropriate for the measurement and reporting of profit and loss and the balance sheet on an historical cost basis are followed, with the exception that certain fixed assets have been revalued.
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 ("Regulations"). As this is the first year that the Regulations have been in effect, no comparative information has been prepared.
Allocations of costs, revenues, assets and liabilities have been made in accordance with the avoided cost principle.
This approach defines the line business as Southpower's core business, and makes an assessment of the costs, revenues, assets and liabilities that would be avoided by the line business if all non-core business were to cease operation. The costs, revenues, assets and liabilities that would be avoided are allocated to those non-core business. Costs, revenues, assets and liabilities that would not be avoided are allocated to the line business.
A description of this process is also contained within Southpower's publicly-available "Disclosure of Methodologies for Allocation of Costs, Revenues, Assets and Liabilities", as required by Regulation 19.
Specific Accounting Policies
The following specific accounting policies which materially affect the measurement of the profit and loss and the balance sheet are applied:
(a) Electricity and line services sales
Sales recognise actual amounts billed during the financial year, together with an adjustment for the value of unread meters, both at the beginning and end of the financial year.
(b) Capital contributions
Capital contributions which are refundable to customers are treated as current liabilities until refunded. Non-refundable contributions are credited to income when received.
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VUW Te Waharoa —
NZ Gazette 1995, No 86
NZLII —
NZ Gazette 1995, No 86
✨ LLM interpretation of page content
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Electricity Information Disclosure Regulations 1994
(continued from previous page)
🏭 Trade, Customs & IndustryElectricity, Financial Statements, Revenue, Expenses, Profit and Loss