New Zealand Gazette – 1996 – No. 123

Page 3102

✨ Financial Accounting Policies



NEW ZEALAND GAZETTE

No. 123

STATEMENT OF ACCOUNTING POLICIES

1. REPORTING ENTITY

1.1 Waitaki Power Limited is an unlisted Company registered under the Companies Act 1955. Waitaki Power Limited is a reporting entity for the purpose of the Financial Reporting Act 1993.

2. SPECIAL PURPOSE FINANCIAL STATEMENTS

2.1 These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1994.

3. GENERAL ACCOUNTING POLICIES

3.1 The measurement base adopted is that of historical cost.

3.2 Accrual accounting is used to match expenses and revenues.

3.3 Reliance is placed on the fact that the Company is a going concern.

4. PARTICULAR ACCOUNTING POLICIES

4.1 Accounts Receivable are shown at expected realisable value after providing for doubtful debts.

4.2 Inventories are valued at the lower of cost and net realisable value. Serial numbered stock is recorded at their individual cost while other stock is recorded at weighted average cost.

4.3 Distribution and Substation assets in place prior to 1 April 1987 and Motor Vehicles, Plant and Equipment purchases prior to 1 April 1987 have been valued as follows:

a) Distribution - current written down book value as at 31 March 1987 less 20%

b) Substation Equipment - depreciated replacement cost certified internally by a registered engineer.

All other assets are valued at cost less accumulated depreciation:

  • Globo Distribution System: 5.0% SL
  • Globo Substation Transformers: 7.5% DV
  • Globo Substation Load Control Equipment: 10.0% DV
  • Distribution System: 5.0% - 9.5% DV
  • Substation Transformers etc: 7.5% DV
  • Substation Load Control Equipment: 10.0% DV
  • Distribution Transformers: 7.5% DV
  • Meter: 10.0% DV - 12.0% DV
  • Buildings: 1.0% SL - 2.5% SL
  • Office Equipment & Furniture: 12.0% DV - 50% DV
  • Plant/Machinery: 10.0% DV - 50% DV
  • Motor Vehicles: 15.0% DV - 26.0% DV

4.4 These accounts are exclusive of GST except for Debtors & Creditors.

4.5 Income tax expense has been calculated using the Liability method. Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.

4.6 Investments are stated at cost.

4.7 Financial Instruments

The Company is party to Financial Instrument arrangements as part of its everyday operations. Revenue and expenses including gains or losses in relation to all Financial Instruments are recognised in the Statement of Financial Performance.

The Company has no off-balance sheet exposure and values all Financial Instruments in the Statement of Financial position as disclosed within the Statement of Accounting Policies.

5. CHANGES IN ACCOUNTING POLICIES

5.1 There were no changes to Accounting Policies for year ended 31 March 1996.

6. METHODOLOGY OF SEPARATION OF BUSINESS

6.1 Waitaki Power Limited has followed the Electricity Disclosure Guideline as issued by the Ministry of Commerce dated 23 June 1994.



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✨ LLM interpretation of page content

🏭 Waitaki Power Limited Financial Performance Statement (continued from previous page)

🏭 Trade, Customs & Industry
Financial Performance, Income, Expenses, Surplus, Tax, Equity, Assets, Liabilities