New Zealand Gazette – 1995 – No. 95

Page 2937

✨ Financial Statements Notes



6 SEPTEMBER NEW ZEALAND GAZETTE 2937

ROTORUA ELECTRICITY LIMITED

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 1995.

NOTE

1. STATEMENT OF ACCOUNTING POLICIES

GENERAL ACCOUNTING POLICIES

These financial statements are prepared in accordance with regulations 6(2) and 6(3) of the Electricity (Information Disclosure) Regulations 1994. They have not been prepared for the purpose of the Financial Reporting Act 1993, the Energy Companies Act 1992 or any other purpose.

The measurement base adopted is that of historical cost modified by the revaluation of certain assets. Accrual accounting concepts have been used to match revenue and expenses.

Reliance is placed on the assumption that the undertakings of the Company are a going concern. With the transfer of the undertakings to the new company (Rotorua Electricity Limited, “REL”), pursuant to the provisions of the Energy Companies Act 1992 and in accordance with the establishment plan, the Rotorua Area Electricity Authority (RAEA) ceased to operate as a legal entity whereas the undertaking itself continued.

PARTICULAR ACCOUNTING POLICIES

The following Particular Accounting Policies which significantly affect the measurement of profit and financial position have been applied.

a. Accounts Receivable are stated at estimated realisable value after providing for debts where collection is doubtful.

b. Inventories are valued at the lower of average cost or net realisable value.

c. Fixed Assets

The following categories of fixed assets are shown at historical cost less a provision for depreciation and are not intended to reflect the economic value of these assets.

Dams, headworks and canals, Distribution systems, Plant and Equipment, Furniture and Fittings, Motor vehicles, Public lighting and Transformers, Generation buildings.

The Company capitalises expenditure where a new asset is created or where an existing asset is improved. Conversion from overhead to underground is capitalised, except for the cost of dismantling the overhead line. The cost of new undergrounding is capitalised.

d. Depreciation

Depreciation has been estimated as follows:

Asset Category Depreciation Rate Method
Dams, headworks and canals 1% Straight Line
Buildings 1-2.5% Straight Line
Distribution system 3-5.5% Straight Line
Plant and Equipment 7% Straight Line
Public Lighting and Transformers 5.5% Straight Line
Electronic Equipment, Motor Vehicles
and Office Furniture & Equipment 13.5% Straight Line


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✨ LLM interpretation of page content

💰 Certification of Financial Statements for Rotorua Electricity Ltd (continued from previous page)

💰 Finance & Revenue
6 August 1995
Audit, Financial Statements, Electricity, Certification, Rotorua Electricity Ltd