✨ Financial Statements
22 AUGUST
NEW ZEALAND GAZETTE
2353
TRUSTPOWER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 1997
Note 1: Statement of Accounting Policies
The financial statements presented here are for the reporting entity TrustPower Limited.
The financial statements have been prepared in accordance with the requirements of the Companies Act 1993 and the Financial Reporting Act 1993. The reporting entity and the group are issuers under the Financial Reporting Act 1993.
The financial statements have been prepared on the basis of historical cost with the exception of certain items for which specific accounting policies are identified:
(a) Principles of Consolidation
The financial statements for the year ended 31 March 1997 are for the entity TrustPower Limited only. The group had no operating subsidiaries during the 1997 year.
(b) Goodwill
Goodwill, representing the excess of the cost of shares in a subsidiary, now amalgamated, over the fair value of the net assets acquired at the date of acquisition, is shown as an intangible asset. Goodwill is amortised on a straight line basis over the period of expected benefit. This period has been assessed as 20 years from the date of acquisition. The carrying amount of goodwill is reviewed annually by the directors and adjusted where it is considered necessary.
(c) Goods & Services Tax (GST)
The statement of financial performance has been prepared so that all components are stated exclusive of GST. All items in the statement of financial position are stated net of GST, with the exception of receivables and payables which include GST invoiced.
(d) Fixed Assets
All fixed assets are initially recorded at cost less accumulated depreciation where applicable. Reticulation network assets have subsequently been revalued as at 31 March 1997 to their Optimised Deprival Value as at that date.
Costs for internally constructed assets comprise direct labour, materials and a proportion of production overheads based on a normal level of activity.
Changes in accounting policies
In previous years all fixed assets have been initially recorded at cost. This is the first year in which assets have been revalued. The change in the basis of valuation of reticulation network assets has resulted in an increase in their value and the value of the corresponding revaluation reserve by $96,277,000. This change has not effected the result.
(e) Depreciation
Depreciation is provided on all fixed assets, other than freehold land, at rates calculated to allocate the assets cost over their estimated useful life.
Depreciation is charged as follows:
- Dams, Headworks & Canals: 1% straight line
- Reticulation Network: 3-5.5% straight line
- Buildings: 1-2.5% straight line
- Plant & Equipment and Motor Vehicles: 20% diminishing value or 5.5-7% straight line
Gains and losses on disposal of fixed assets are taken into account in determining the operating result for the period.
Next Page →
PDF embedding disabled (Crown copyright)
View this page online at:
VUW Te Waharoa —
NZ Gazette 1997, No 100
NZLII —
NZ Gazette 1997, No 100
✨ LLM interpretation of page content
🏭
TrustPower Limited Financial Position Statements
(continued from previous page)
🏭 Trade, Customs & Industry1 August 1997
Financial Statements, Accounting Policies, Goodwill, GST, Fixed Assets, Depreciation, TrustPower Limited