✨ Financial Accounting Policies
(b) Expenditure
Expenditure shown in the Operating Statement is derived as follows:
Expenditure for the Generation Business is directly attributable to the corporatised Generation Business of Waipori Power Generation Ltd.
Line Business
- Transmission charges, employee remuneration, administration and operating expenses are directly attributable to the Line Business.
- Maintenance is provided by the Company’s Contracting Group and charged at market rates to the Line Business group.
Contracting Business
- Employee remuneration, materials/plant, administration and operating expenses are directly attributable to the Contracting Business.
Indirect costs, with the exception of unallocatable overheads, are charged on an activity basis to both the Line and Contracting Businesses.
Unallocatable overheads are charged to the Line and Contracting Businesses on a basis of staff numbers and asset value.
(c) Dividends
Dividends for each of the businesses have been calculated in accordance with the Company’s dividend policy.
(d) Allocation of Assets and Liabilities
Assets and liabilities are those which are directly related to the respective business.
(e) Current Assets
Accounts receivable are those directly related to the respective business and are valued at expected realisable value less provision for doubtful debts.
(f) Fixed Assets
Furniture and fittings, plant and equipment, and motor vehicles are valued at market value as at 31 December 1992 and have been adjusted by accumulated depreciation, subsequent additions at cost and disposals at book value.
Network and Generation assets are valued at the 1 July 1993 value recommended by Southpac Corporation Ltd following its independent study of the value of Dunedin Electricity Ltd and Waipori Power Generation Ltd, and have been adjusted by accumulated depreciation, subsequent additions at cost and disposals at book value.
(g) Distinction Between Capital and Revenue Expenditure
Capital expenditure is defined as all expenditure on the creation of a new asset, and any expenditure which results in a significant improvement to the original function of an existing asset.
Revenue expenditure is defined as expenditure which maintains an asset in working condition and expenditure incurred in maintaining and operating the Company.
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VUW Te Waharoa —
NZ Gazette 1996, No 142
NZLII —
NZ Gazette 1996, No 142
✨ LLM interpretation of page content
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Statement of Accounting Policies for Dunedin Electricity Ltd
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Financial Statements, Electricity, Dunedin, Line Business, Contracting Business, Generating Business