✨ Financial Accounting Policies
NEW ZEALAND GAZETTE
No. 86
STATEMENT OF ACCOUNTING POLICIES
1. REPORTING ENTITY
1.1 Waitaki Power Limited is an unlisted Company registered under the Companies Act 1955. Waitaki Power Limited is a reporting entity for the purpose of the Financial Reporting Act 1993.
2. SPECIAL PURPOSE FINANCIAL STATEMENTS
2.1 These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1994.
2.2 As this is the first year that the Regulations have been in effect, comparative information is not available and therefore no comparative information has been prepared.
3. GENERAL ACCOUNTING POLICIES
3.1 The measurement base adopted is that of historical cost.
3.2 Accrual accounting is used to match expenses and revenues.
3.3 Reliance is placed on the fact that the Company is a going concern.
3.4 The financial statements have been prepared on the basis that all revenue, costs, assets and liabilities have been directly attributed to the appropriate business activity.
4. PARTICULAR ACCOUNTING POLICIES
4.1 Sundry Debtors are shown at actual value recorded in the debtors ledger less a provision for doubtful debts.
4.2 Inventories are valued on the basis of weighted average cost except for serial numbered stock which is valued at cost.
4.3 Distribution and Substation assets in place prior to 1 April 1987 and Motor Vehicles, Plant and Equipment purchases prior to 1 April 1987 have been valued in accordance with Inland Revenue Department guidelines prior to that date and subsequently depreciated in accordance with the following rates. All other assets are valued at cost less accumulated depreciation as follows:
| Asset Type | Depreciation Rate |
|---|---|
| Globo Distribution System | 5.0 % SL |
| Globo Substation Transformers etc | 7.5 % DV |
| Globo Substation Load Control Equipment | 10.0 % DV |
| Distribution System | 5.0 % DV |
| Substation Transformers etc | 7.5 % DV |
| Substation Load Control Equipment | 10.0 % DV |
| Distribution Transformers | 7.5 % DV |
| Meter | 10.0 % DV |
| Buildings - tax rate as per construction | |
| Furniture/Fittings | 20.0 % DV |
| Office Equipment | 20.0 % DV |
| Plant/Machinery | 10.0 % DV |
| Motor Vehicles | 20.0 % DV |
| Computer - purchased after 1 July 1993 | 40.0 % DV |
| Software - purchased after 1 July 1993 | 40.0 % DV |
4.4 These accounts are exclusive of GST except for Debtors & Creditors.
4.5 Income tax expense has been calculated using the Liability method. The partial basis of accounting for deferred tax has been adopted.
4.6 Investments are stated at cost.
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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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Certification of Financial Statements under Electricity Information Disclosure Regulations 1994
(continued from previous page)
🏭 Trade, Customs & Industry15 August 1995
Electricity, Financial Statements, Certification, Audit, Waitaki Power, Regulations