✨ Financial Report Continuation
2704 NEW ZEALAND GAZETTE No. 105
Horowhenua Energy Limited Line and Energy Businesses - Annual Report 1996 Page 5
d) Leases
The Company leases certain land and buildings.
Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased items, are included in the determination of the operating profit in equal installments over the lease term.
e) Financial Instruments
The Energy Business is party to financial instruments with off balance sheet risk to meet financing needs and to reduce exposure to fluctuations in electricity purchase prices.
f) Changes in Accounting Policies
On 1 April 1995 the Company adopted infrastructure accounting methods and valued most network assets using ODV methodology. all other accounting policies have been applied on bases consistent with those used in the previous year.
The effect of the change to ODV was an increase in the value of network assets of $20.3 million. The impact of the adoption of infrastructure accounting in the current financial year resulted in a reduction in depreciation of approximately $1.6 million and an increase in maintenance of approximately $0.9 million.
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VUW Te Waharoa —
NZ Gazette 1996, No 105
NZLII —
NZ Gazette 1996, No 105
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Horowhenua Energy Limited Line and Energy Businesses - Annual Report 1996
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💰 Finance & Revenue26 August 1996
Financial statements, audit, certification, Horowhenua Energy Limited