New Zealand Gazette – 1995 – No. 93

Page 2807

✨ Financial Statements



NEW ZEALAND GAZETTE

4 SEPTEMBER

2807

KING COUNTRY ENERGY LIMITED

NOTES TO THE FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH

THE ELECTRICITY INFORMATION DISCLOSURE REGULATIONS 1994

FOR THE YEAR ENDED 31 MARCH 1995

  1. STATEMENT OF ACCOUNTING POLICIES
    The Financial Statements presented here pertain to the reporting entity King Country Energy Limited and have been prepared in accordance with the requirements of Regulation 6 of the Electricity (Information Disclosure) Regulations 1994. The Lines Business of the Company represents Distribution of Electricity and the Energy Business represents Generation and Energy Trading.

    The Financial Statements have been prepared on the basis of historical cost with the exception of certain items for which specific accounting policies are identified.

    ACCOUNTING PERIOD
    These financial statements cover trading for the twelve months to 31 March 1995 in the financial year.

    DISTINCTION BETWEEN CAPITAL AND REVENUE EXPENDITURE
    Capital Expenditure is all expenditure on the creation of a new asset and any expenditure which results in a significant improvement of the original function of an existing asset. Revenue Expenditure is expenditure which restores an asset to its original condition and all expenditure incurred in maintaining and operating the Company's business.

    ELECTRICITY SALES
    Electricity meters are read on the basis of constant cycles each year. Account has been taken of the unbilled sales at the end of the financial period which have been accrued.

    ACCOUNTS RECEIVABLE
    Accounts Receivable are stated at expected net realisable value. An estimate is made for doubtful debts based on a review of all outstanding amounts at year end. Bad debts are written off during the period in which they are identified.

    CAPITAL CONTRIBUTIONS
    Capital Contributions are taken to income when received.

    INVENTORIES
    Inventories are stated at the lower of cost or net realisable value. Cost is determined at average in store prices. Allowance is made for obsolescence where necessary.

    INVESTMENTS
    Investments are shown at cost. Interest from investments has been accrued.

    FIXED ASSETS
    Fixed Assets, other than Land and Buildings, are stated at cost less accumulated depreciation. Land and Buildings are stated at latest Government Valuation less accumulated depreciation on buildings.
    As future revisions of Government Valuations are received Land and Buildings will be revalued accordingly.

    OPTIMISED DEPRIVAL VALUE
    An Optimised Deprival Valuation (ODV) of the Network Business of the Company was carried out as at 31 March 1994, during the current Financial Year. This valuation was carried out for information disclosure purposes under the Energy Companies Act 1992, Electricity Act 1992 and the Electricity (Information Disclosure) Regulations 1994. Under the ODV methodology the value of the Network Business as at 31 March 1994 was $23.82 million.



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🏭 Statement of Financial Position for King Country Energy Limited (continued from previous page)

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