New Zealand Gazette – 1996 – No. 104

Page 2678

✨ Financial Statements



2678 NEW ZEALAND GAZETTE No. 104

h) Investments

Investments are valued at the lower of cost and net realisable value.

i) Revenue Recognition

Revenue from the sale of energy and value added services is recognised when invoices are issued plus an accrual is made for unread meters at balance date.

j) Basis of Allocation to Business Units.

In general the Ministry of Commerce guidelines for allocation of expenditure have been applied. Deviations from the guidelines have been used where assumptions made in the guidelines have not held true for Powerco Limited, and are as follows:

  • The assumption that energy alone interfaces with electricity consumers does not hold for Powerco Limited. Customer related expenditures are allocated according to the number of customers attributable to each business.

  • Overhead costs that are integral parts of operating each business have been allocated according to the direct expenditure incurred by each business.

Changes in Accounting Policies

The company has adopted a policy of accounting for deferred taxation on a partial basis. Previously all timing differences were accounted for on a comprehensive basis. As a result of the amalgamation with Taranaki Energy, the Directors have adopted the policy of that company as more appropriate to the circumstances of the amalgamated company.

As a result of the change, the previously accounted for liability has been reversed to the current year taxation expense as shown in Note 15. The statement of financial position impact is also set out in Note 15.

The company has reviewed the allocation methods used for the allocation of corporate overheads to the various business units of the company. Where a new method of allocation provides better representation of the actual distribution of cost, and is also in line with the allocation guidelines, the new method has been adopted.

There were no other material differences in the accounting policies followed by the amalgamating companies, Taranaki Energy Limited and Powerco Limited in previous years. There have been no other changes in the policies used in the previous financial period.

Comparative Figures

Comparative figures shown are for Powerco Limited and Taranaki Energy Limited for the year ended 31 March 1995. As a result of the amalgamation with Taranaki Energy Limited, current year's transactions include those of that power company since 1 April 1995 in accordance with Section 27(2) of the Electricity (Information Disclosure) Regulations 1994.



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🏭 Powerco Limited Statement of Movements in Equity (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statement, Equity, Line, Energy, Other