✨ Electricity Financial Statements
3240 NEW ZEALAND GAZETTE No. 133
TOP ENERGY LIMITED
NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS
STATEMENT OF ACCOUNTING POLICIES
FOR THE 12 MONTHS ENDED 31 MARCH 1996
6 Fixed Assets
Fixed assets held by the former Bay of Islands Electric Power Board were vested in the Company, Top Energy Limited, on 1 May 1993 under the Energy Companies Act 1992. Fixed assets were vested at book value as at 1 May 1993, and represent "cost" to the Company.
The cost of fixed assets purchased after 1 May 1993 is the value of the consideration given to acquire the assets and the value of other directly attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended service.
The infrastructural asset is valued at a valuation being 71% of the latest Optimised Deprival Value (ODV) which represents a business valuation by Ernst & Young, independent registered valuers.
Capital work-in-progress includes materials, and a portion of direct labour and production overhead appropriate to the stage of completion attained.
Land and Buildings, other than those relating to substations which are "owned" by the lines business, are "owned" by a property division. Space occupied by the various parts of the total business is charged at a market rental, established by an independent valuer.
7 Renewal Accounting - Distribution Network
Assets comprising the distribution network system are reported using the renewal accounting method and are stated at valuation. These infrastructural assets include all items directly involved in the delivery of electricity, but exclude substation land, buildings, transformers, circuit breakers and load management control equipment. All expenditure which extends or enhances the infrastructure is capitalised. Expenditure incurred in maintaining the infrastructure's capacity is treated as an expense in the period in which it is incurred. The actual amount expended is compared with a predetermined benchmark level and any shortfall or excess is charged to the statement of financial performance. Similarly the value of the infrastructure asset is increased or decreased by the same amount.
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VUW Te Waharoa —
NZ Gazette 1996, No 133
NZLII —
NZ Gazette 1996, No 133
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Electricity Information Disclosure for Top Energy Limited
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