✨ Financial and Valuation Reports
2808 NEW ZEALAND GAZETTE No. 93
NETWORK, ENERGY TRADING AND GENERATION BUSINESS VALUATIONS
At the same time as the ODV was carried out a valuation of the Network, Energy Trading and Generation businesses was prepared. This valued the overall business at $35 million. This value has not been taken into account in the financial records of the Company.
GOVERNMENT VALUATIONS
Land and Buildings at the Kuratau Power Station were valued by Valuation New Zealand as at 1 October 1992 at $4,300,000. This was considerably higher than the previous calculation of $332,000 as at 1 July 1989 and was due to Valuation New Zealand adopting the same method for valuation as they have used for Electricorp Power Stations. The method is being appealed in the High Court by Electricorp and King Country Energy Limited has appealed the valuation of $4,300,000.
For this reason the 1 July 1989 valuation of Kuratau Power Station has been shown in the accounts. Valuation New Zealand have confirmed that the Government Valuations of all land and buildings except the Kuratau Power Station are appropriate for financial reporting purposes. They cannot confirm this for the Power Station until after the outcome of Appeals to the High Court.
The Directors have considered all the circumstances and have used the Valuation which the consider would be most appropriate for consistency purposes in the accounts pending resolution of the outcome of Court decisions.
DEPRECIATION
Fixed Assets have been depreciated on the following basis.
- Distribution Equipment 4% straight line on Cost
- Buildings 2% straight line on Valuation
- Generation Plant 4% straight line on Cost
- Motor Vehicles 20% DV on Cost
- Plant and Equipment 20% DV on Cost
TAXATION
The Income Tax charged to the Statement of Financial Performance includes both current and deferred tax and is calculated after allowing for non-assessable income and non-deductible costs.
Deferred taxation, calculated using the liability method, is accounted for in respect of those timing differences expected to reverse in the foreseeable future. A deferred tax benefit is recognised only if there is a virtual certainty of realisation.
DEVELOPMENT ASSETS
Development Costs relate to Whangaehu Hydro Generation Project and Piriaka Resource Consent Application which is still proceeding. Development Costs Capitalised are valued at cost or Directors Valuation less amounts written off. Where a project has not reached a stage which permits a reasonable assessment of the likelihood of it continuing, the value attributed to the project remains capitalised. Project values are assessed at least annually to see if any diminution in value is likely to have accrued over and above any amortisation. Development costs are then either written off or transferred to fixed assets.
GOODS AND SERVICES TAX (GST)
The Statement of Financial Performance has been prepared so that all components are stated exclusive of GST.
CHANGES IN ACCOUNTING POLICY
All accounting policies have applied on a basis consistent with those used in the previous financial period.
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VUW Te Waharoa —
NZ Gazette 1995, No 93
NZLII —
NZ Gazette 1995, No 93
✨ LLM interpretation of page content
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Statement of Financial Position for King Country Energy Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial, Equity, Energy, Company, Regulations
🏭 Network, Energy Trading and Generation Business Valuations
🏭 Trade, Customs & IndustryValuation, Energy, Business, Financial
💰 Government Valuations of Land and Buildings
💰 Finance & RevenueValuation, Land, Buildings, Kuratau Power Station, High Court
💰 Depreciation of Fixed Assets
💰 Finance & RevenueDepreciation, Fixed Assets, Distribution Equipment, Buildings, Generation Plant, Motor Vehicles, Plant and Equipment
💰 Taxation Policy
💰 Finance & RevenueTaxation, Income Tax, Deferred Tax, Liability Method
💰 Development Assets Valuation
💰 Finance & RevenueDevelopment Costs, Whangaehu Hydro Generation Project, Piriaka Resource Consent Application, Capitalisation, Amortisation
💰 Goods and Services Tax (GST) Accounting
💰 Finance & RevenueGST, Financial Performance, Exclusive of GST
💰 Changes in Accounting Policy
💰 Finance & RevenueAccounting Policy, Consistency, Financial Period