✨ Financial Statements Notes
2 SEPTEMBER NEW ZEALAND GAZETTE 2581
Power New Zealand Limited
(g) Revenue Recognition
Income from electricity sales includes an estimated amount for accrued electricity sales from meters unread at balance date.
Changes in Application of Accounting Policies
The comparative information has been restated to reflect changes in application of accounting policies arising from changes in the calculations required by the lightheaded regulations and changes in engineering estimates which form the basis of the ODV valuation. The current years results have been prepared on the basis that the changed application of accounting policies had applied consistently throughout the 1996 and 1995 reporting periods.
In the prior year, items such as merger and acquisition expenses, takeover response expenses and investing activities were included within the Network Business Unit. The Ministry of Commerce has revised its guidelines, which now require that such items not be included within a line business activity. The Network Business Unit has excluded these items and has restated the 1995 position to reflect the current requirements of the guidelines, increasing the net surplus for that year from $15,985,000 to $18,944,000.
Following advice of the company’s independent engineers the economic lives of certain assets within the reticulation system have been increased. This together with other changes to the previous ODV valuation basis had the effect of increasing the ODV valuation of the reticulation assets. For reliability and comparative purposes the 1995 valuation has been restated to reflect this increase. The impact on the 1995 financial statements is that the reticulation assets and revaluation reserve have increased by $35,855,000 respectively.
The impact of the above changes have been reflected in the restated 1995 performance measures and statistics.
Changes in Accounting Policies
There have been no changes in accounting policies.
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VUW Te Waharoa —
NZ Gazette 1996, No 99
NZLII —
NZ Gazette 1996, No 99
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Notes to Financial Statements of Power New Zealand Limited
(continued from previous page)
🌾 Primary Industries & ResourcesFinancial Statements, Accounting Policies, Electricity, Disclosure Regulations