New Zealand Gazette – 1996 – No. 165

Page 4332

✨ Accounting Policies



4332 NEW ZEALAND GAZETTE No. 165

WEL ENERGY GROUP LIMITED

(f) Depreciation of Fixed Assets

Depreciation of the distribution system and buildings is provided for on a straight line basis over their estimated useful lives as follows:

  • Buildings 3%
  • Distribution system 4.4%

Depreciation of other fixed assets is provided for on a diminishing value basis as follows:

  • Furniture 20 - 25%
  • Plant and Equipment 20 - 25%
  • Vehicles 20 - 25%

(g) Principles of Line and Energy Business Split

The line and energy businesses form segments of the operations of WEL Energy Group Limited. The allocation of costs, revenue, assets and liabilities was carried out on a basis which reflects the items attributable to each segment of the Group.

Where possible, financial statement items were allocated directly to the line or energy business. In those instances where direct allocation was not possible, the following allocation methodologies were employed:

Corporate Overheads

Corporate overhead costs were allocated as follows:

Personnel and payroll costs based on staff numbers; accounting costs based on complexity (primarily the number of transactions generated); Directors fees and consultancy based on an estimate of time spent on each segment. All other overheads were allocated in proportion to the allocation of other previously allocated overheads.

Property Costs

Allocated using market based rentals.

Expenditure

Where a segment of the company performs line or energy business activities in addition to other functions each item of expenditure incurred by that segment has been allocated to the line or energy business in proportion to the total level of line or energy business activity undertaken by the segment.

Bank Balances

All monies are managed centrally with each segment maintaining a current account with Corporate. Allocating bank balances directly has resulted in no bank balances being shown within the line or energy business.

Electricity Debtors

Electricity debtors have been allocated to the line and energy businesses consistent with the proportion of line or energy revenue to total line and energy revenue.



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✨ LLM interpretation of page content

🏭 Statement of Accounting Policies for WEL Energy Group Limited (continued from previous page)

🏭 Trade, Customs & Industry
Accounting Policies, Financial Statements, Depreciation, Fixed Assets, Line and Energy Business Split, Cost Allocation, Revenue Allocation, WEL Energy Group