✨ Electricity Company Financial Statements
2 OCTOBER NEW ZEALAND GAZETTE 3309
TAURANGA ELECTRICITY LIMITED
Specific Accounting Policies
The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied.
a) Revenue Recognition
Sales of electricity are determined on the basis of actual amounts billed to the customer during the year as determined by meter readings with an accrual for unbilled sales at year end.
b) Operating Lease Income
Income from an operating lease is recognised on a straight line basis over the term of the lease.
c) Depreciation
Depreciation is provided on a straight line or diminishing value basis on all tangible fixed assets other than freehold land, at rates calculated to allocate the assets’ cost or valuation less estimated residual value, over their estimated useful lives.
Major depreciation periods are:
| Asset Type | Depreciation Period |
|---|---|
| Freehold buildings | 40 years |
| Plant and equipment | 5 to 15 years |
| Office furniture and equipment | 5 to 10 years |
| Motor vehicles | 4 to 5 years |
| Network assets | 5 to 25 years |
| Under construction [Network] | Nil |
d) Leases
The company leases certain office furniture and equipment.
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 instalments over the lease term.
e) Income Tax
The income tax expense charged to the statement of financial performance includes both the current year’s provision and the income tax effects of timing differences calculated using the liability method.
f) Fixed Assets
All fixed assets are recorded at cost.
g) Receivables
Receivables are stated at their estimated realisable value.
The accompanying Statement of Accounting Policies and Notes form part of and are to be read in conjunction with these Financial Statements. The Financial Statements have been prepared solely for the purpose of complying with Regulations 6[2] and 6[3] of the Electricity [Information Disclosure] Regulations 1994 and are not intended for any other purpose.
[A.DR96]
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VUW Te Waharoa —
NZ Gazette 1996, No 138
NZLII —
NZ Gazette 1996, No 138
✨ LLM interpretation of page content
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Certification of Financial Statements and Performance Measures by Tauranga Electricity Limited
(continued from previous page)
🏭 Trade, Customs & Industry7 August 1996
Electricity, Financial Statements, Performance Measures, Certification, Tauranga