✨ Financial Statements Notes
2206 NEW ZEALAND GAZETTE No. 83
Wairarapa Electricity Limited and Subsidiary Companies
Notes to the Financial Statements
1) Statement of Accounting Policies
The financial statements presented here are for the group comprising Wairarapa Electricity and its subsidiaries.
The financial statements have been prepared in accordance with the requirements of the Electricity (Information Disclosure) Regulations 1994.
The financial statements have been prepared on the basis of historical cost with the exception of certain items for which certain specific accounting policies are identified.
(i) Principles of Consolidation
The consolidated financial statements include those of the holding company and its subsidiaries accounted for using the purchase method. All intercompany balances and unrealised profits and losses on transactions between group companies have been eliminated.
(ii) Inventories
Inventories are stated at the lower of cost and net realisable value. Costs have been assigned to inventory quantities on hand at balance date using weighted average cost.
(iii) Receivables
Trade, Non-Trade and Hire Purchase Receivables are stated at their net estimated realisable value. Hire Purchase Receivables include unearned interest. An adjustment has been made at year end for unearned interest on hire purchase transactions according to the 'Rule of 78'.
An estimate is made for doubtful debts based on a review of all outstanding amounts at year end. Bad debts are written off in the period in which they are identified.
(iv) Fixed Assets
Fixed assets are stated at costs less accumulated depreciation where applicable. Depreciation is provided on all tangible fixed assets, other than freehold land and the distribution system.
Depreciation is provided using rates which write off assets over their expected useful lives as below:
| Buildings | 40 - 100 years |
| Generation | 10 - 40 years |
| Plant and equipment | 5 - 10 years |
| Motor vehicles | 5 years |
Gains and losses on disposal of fixed assets are taken into account in determining the operating result for the year.
Freehold land and improvements are valued at the lower of cost or net realisable value.
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VUW Te Waharoa —
NZ Gazette 1996, No 83
NZLII —
NZ Gazette 1996, No 83
✨ LLM interpretation of page content
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Wairarapa Electricity Limited Financial Statements
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🏭 Trade, Customs & IndustryFinancial Statements, Electricity, Wairarapa, Accounting Policies, Regulations 1994