New Zealand Gazette – 1996 – No. 101

Page 2619

✨ Financial Statements Notes



3 SEPTEMBER NEW ZEALAND GAZETTE 2619

MAINPOWER NEW ZEALAND LTD

Notes to and Forming Part of the Financial Statements

For The Year Ended 31 March 1996

1.2 Depreciation (Cont’d)

Major depreciation rates for the Contracting Division are:
Motor Vehicles - 20% to 26%
Plant and equipment - 10% to 50%
Office furniture and equipment - 10% to 33%

Gains and losses on disposal of fixed assets are taken into account in determining the operating result for the year.

1.3 Income Tax

The taxation expense charged against the profit for the year is the estimated liability in respect of that profit and is calculated after allowance for permanent differences and timing differences not expected to reverse in future periods. This is the partial basis for the calculation of deferred taxation.

The company follows the liability method of accounting for deferred taxation. Future taxation benefits attributable to losses carried forward or timing differences are recognised in the financial statements only where there is virtual certainty of realisation.

1.4 Goods and Services Tax

All items in the Financial Statements are net of Goods and Services Tax except for Receivables and Accounts Payable which are shown inclusive of GST.

1.5 Allocation of Costs, Revenues, Assets and Liabilities

The allocation of costs, revenues, assets and liabilities differ from that contained in the Electricity (Information Disclosure) Regulations 1994. In accordance with regulation 19 of Electricity (Information Disclosure) Regulations 1994 MainPower New Zealand Ltd has publicly disclosed those variations.

1.6 Business Accounting Separation

Lines Business

The Lines business provides and maintains the electricity distribution network throughout the North Canterbury and Kaikoura regions and manages the distribution network of Kaiapoi Electricity Ltd.

Other Business Activities

  • Energy Business
    Includes the trading of energy purchased on behalf of and consumed by the Company’s energy trading customers connected to the Company’s network and Kaiapoi Electricity’s network together with customers connected to network’s outside MainPower’s traditional area of supply.

  • Contracting Business
    The Company’s power systems contracting activities have been separated from its other businesses and transactions are treated as if the Contracting business were operating as an independent and separate entity.

1.7 Changes in Accounting Policies

Intercompany Loans

Intercompany loans between the Lines business and Other business ($500,000) have been eliminated and the results for the 1995 financial year have been restated.

Distribution Line Losses

Distribution line losses have been recognised as a charge against the profits of the Other Business Activities for the current financial year ($867,440). In previous years losses were treated as an expense of the Line Business.

Line Losses for the financial year ending 31 March 1995 amounted to $755,583 and no adjustment has been made to the 1995 comparative information.



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✨ LLM interpretation of page content

🏭 Notes to and Forming Part of the Financial Statements for MainPower New Zealand Ltd (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Accounting Policies, Fixed Assets, Depreciation, Electricity, Income Tax, GST, Business Accounting, Intercompany Loans, Line Losses