✨ Financial Statements Notes
2734 NEW ZEALAND GAZETTE No. 91
POWER NEW ZEALAND LIMITED
2.7 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the Year Ended 31 March 1995
1. STATEMENT OF ACCOUNTING POLICIES
Special Purpose Financial Statements
These financial statements are made pursuant to Power New Zealand Limited’s obligations under the Regulations to report separate financial results in respect of its line business activities and other business activities. They are in addition to the company’s financial statements published pursuant to the company’s obligations under the Companies Act 1955.
These are the first financial statements made by Power New Zealand Limited pursuant to Regulations 13, 15 and 16.
The Network Business Unit is treated as the core business activity and corporate activity is accounted for through the Network Business Unit financial statements. Other Business Units comprise the Energy and Contracting Business Units.
In these statements Power New Zealand Limited has adopted the costs and revenue allocation methodology stipulated in the Guidelines to the Regulations in most respects. All departures from the Guidelines are described in Power New Zealand Limited’s Disclosure No. 5.
General Accounting Policies
The general accounting principles as recommended by the New Zealand Society of Accountants for the measurement and reporting of operating surplus on a historical cost basis have been followed by the group with the exception of Distribution Network System Assets which have been revalued to their Optimised Deprival Value (ODV) in accordance with the treatment outlined in the Electricity Disclosure Guidelines. This is more fully explained within the particular accounting policy for Fixed Assets.
Accrual accounting is used to match revenues and expenses. Reliance is placed on the fact that the company is a going concern.
Particular Accounting Policies
The following particular accounting policies which materially affect the measurement of the financial performance and position have been applied:
(a) Financial Statements
The financial statements include those of the parent company and its subsidiaries.
Inter-business unit transactions are included in the reported figures for each business unit under their respective categories.
(b) Associate Company
The associate company, Pacific Energy Limited, is a company in which Power New Zealand Limited has a 50% shareholding and in whose commercial and financial policy decisions it participates.
The results of the associate company have been reflected in the Network Business Unit financial statements on an equity accounting basis which recognises the group’s share of surpluses in the statement of financial performance, and its share of post acquisition increases or decreases in net assets, in the statement of financial position.
(c) Investments
Long-term investments are stated at cost, except when a permanent change in value has occurred, where market value is adopted.
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VUW Te Waharoa —
NZ Gazette 1995, No 91
NZLII —
NZ Gazette 1995, No 91
✨ LLM interpretation of page content
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Power New Zealand Limited Financial Position Statement
(continued from previous page)
💰 Finance & RevenueFinancial Position, Assets, Liabilities, Shareholders' Funds, Current Assets, Current Liabilities
💰 Notes to and Forming Part of the Financial Statements for the Year Ended 31 March 1995
💰 Finance & RevenueAccounting Policies, Special Purpose Financial Statements, Network Business Unit, Energy and Contracting Business Units, Fixed Assets, Associate Company, Investments