New Zealand Gazette – 1996 – No. 119

Page 2997

✨ Financial Statements



16 SEPTEMBER NEW ZEALAND GAZETTE 2997

EnergyDirect Corporation Limited
ELECTRICITY BUSINESS

(d) Hire Purchase Receivables
Hire purchase receivables include unearned interest. Total interest is accrued at the time the contract is made and is allocated over the term of the agreement using the "Rule of 78" method. An adjustment is made at balance date to separately disclose unearned income on hire purchase as a current liability.

(e) Inventories
Inventories are valued at the lower of cost and net realisable value. Allowance has been made for obsolete and damaged inventory. Cost has been determined as follows:

  • Electricity Distribution Reticulation Inventory : Weighted average cost
  • Electricity Appliance Inventory : Specific identified cost

(f) Joint Venture
The Corporation's proportionate interest in the assets, liabilities, revenues and expenses of its joint venture generator, Silverstream Landfill Gas, is included in the relevant components of the energy business activities of the electricity business as required by Section 6 (3) (b) of the Electricity (Information Disclosure) Regulations 1994.

(g) Income Taxation
The Corporation uses the comprehensive liability method of accounting for deferred taxation. Future taxation benefits attributable to taxation losses or timing differences are only recognised when there is virtual certainty of realisation.
The income taxation expense charged against the operating surplus for the period is the estimated liability in respect of that operating surplus and is calculated after allowance for permanent differences.

(h) Goods and Services Tax (GST)
The statement of financial performance has been prepared so that all components are stated exclusive of GST.

Changes in Accounting Policies
There have been no changes in accounting policies. All accounting policies have been applied on basis consistent with those used in the previous year.



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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