New Zealand Gazette – 1996 – No. 119

Page 2996

✨ Financial Statements



2996 NEW ZEALAND GAZETTE No. 119

EnergyDirect Corporation Limited

ELECTRICITY BUSINESS

(a) Associate Company

This is a company in which EnergyDirect Corporation holds a substantial shareholding of 25% and in whose commercial and financial policy decisions it participates.

The financial statements of the associate company have been reflected in the electricity business activities of the energy business on an equity accounting basis, which shows the Corporation’s share of the associate company’s profits/(losses) in its profit and loss statement and its share of post-acquisition increases or decreases in net assets in the balance sheet.

(b) Fixed Assets and Depreciation

The electricity business has six classes of fixed assets that are depreciated at rates that allocate the cost over the estimated useful lives:

  • Electricity Distribution 4% of cost price
  • Electricity Generation 4% of cost price
  • Substation Land
  • Motor Vehicles 20% of diminishing value
  • Plant, Tools and Equipment 20% of diminishing value
  • Office Equipment (including computers) 20% of diminishing value

The electricity business expenses all replacement and refurbishment expenditure on the electricity distribution system, with the exception of replacement and improvements to electricity zone substations, transformers and switchgear, which are capitalised. Extensions to the system and the cost of converting overhead lines to underground cables are capitalised and depreciated for financial reporting purposes.

All fixed assets are recorded at cost less accumulated depreciation.

Capital contributions from consumers towards the cost of reticulating new subdivisions and constructing lines are deducted from the cost of the asset to which they relate and the net amount is capitalised to electricity distribution.

During 1995, distribution stocks of electricity meters, transformers and switchgear were reclassified to electricity distribution fixed assets from inventories to more appropriately reflect these items as distribution assets.

(c) Receivables

Receivables are stated at their estimated net realisable value, after making a general provision for doubtful debts.

Receivables include an assessment for unbilled sales of electricity at balance date.



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✨ LLM interpretation of page content

🏭 Statement of Financial Position of EnergyDirect Corporation Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Balance Sheet, Equity, Assets, Liabilities