New Zealand Gazette – 1996 – No. 90

Page 2363

✨ Financial Statements Notes



23 AUGUST

NEW ZEALAND GAZETTE

2363

WAITOMO ENERGY SERVICES LIMITED

Electricity & Other Business Activity

Notes to the Financial Statements

NOTE 1: STATEMENT OF ACCOUNTING POLICIES

GENERAL ACCOUNTING POLICIES

The general accounting policies recognised as appropriate for the measurement and reporting of earnings and financial position on an historical cost basis are followed. Accrual accounting is used to match expenses with revenues. Reliance is placed on the fact that the Company is a going concern. The accounts are prepared in accordance with the Companies Act 1955 and 1993 and the Financial Reporting Act 1993.

PARTICULAR ACCOUNTING POLICIES

The following particular accounting policies which materially affect the measurement of profit and the financial position have been applied:

Debtors

Debtors are stated at their estimated realisable value.

Fixed Assets

The Company has five classes of fixed assets:

  • Freehold Land
  • Freehold Buildings
  • Motor Vehicles, Plant and Equipment
  • Distribution System
  • Generation Plant

Land and Buildings were revalued on 1st April 1995 based on the lower of estimated market value or Government Valuation. All other assets are valued at cost.

Statutory Base

The Company was incorporated under the Companies Act 1955 in accordance with the Energy Companies Act 1992. The assets of the Company were transferred from the Waitomo Electric Power Board in accordance with an Order in Council dated 7th May 1993. All assets were transferred at net book value as at 31st March 1993. The preparation of these financial statements is in accordance with the Companies Act 1955 (as amended) and the Energy Companies Act 1992. Additional disclosures have also been made as required by the Energy Disclosure Information Regulations 1994.

Staff Leave and Gratuity Payments

Provision is made in respect of the Company’s liability for annual leave and gratuity payments. At the balance date retiring gratuities have been accrued in respect of all employees with more than 10 years service with the Company and aged 45 years or over. Gratuity payment is paid on the retirement of an employee who has at the time of retirement been continuously employed by the Company for a period of at least 10 years.

Depreciation

Depreciation is provided on either a straight line or a diminishing value basis on all fixed assets other than freehold land, at rates calculated to allocate the assets’ cost or valuation less estimated residual value, over their estimated useful life.

Major depreciation rates and methods:

Asset Type Useful Life (Years) Method
Buildings and generation headworks 40-100 Straight Line
Generation plant 10% Diminishing Value
Distribution system 5% to 10% Diminishing Value
Distribution system (pre 1987) 20 Straight line
Motor vehicles, plant & equipment 10% to 50% Diminishing Value

Inventory

Stocks are stated at the lower of cost, determined on an average cost basis, or net realisable value.

Investments

Investments are stated at cost, less any share of post acquisition increases/decreases in net assets.



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Electricity, Financial Statements, Income, Expenses, Assets, Liabilities, King Country