New Zealand Gazette – 1997 – No. 102

Page 2386

✨ Electricity Information Disclosure



2386 NEW ZEALAND GAZETTE No. 102

OTAGO POWER LIMITED

ELECTRICITY (INFORMATION DISCLOSURE) REGULATIONS 1994

STATEMENT OF ACCOUNTING POLICIES

GENERAL ACCOUNTING POLICIES

SPECIAL PURPOSE FINANCIAL STATEMENTS

These Financial Statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1994.

These Financial Statements should be read in conjunction with the Financial Statements and Notes issued to Shareholders for the year ended 31 March 1997.

MEASUREMENT BASE

The measurement base adopted is that of historical cost except for the revaluation of certain fixed assets as stated. Reliance is placed on the fact that Otago Power Limited is a going concern.

Accrual Accounting is used to match expenses and revenues.

PARTICULAR ACCOUNTING POLICIES

  1. Valuation of Assets

    (a) Investments are recorded at cost plus accumulated interest.

    (b) Debtor balances are at estimated realisable value after writing off bad debts for the period and making an allowance for doubtful debts.

    (c) Inventory is valued at the lower of cost or net realisable value on a weighted average cost basis.

  2. Fixed Assets

    The assets of the Otago Electric Power Board (O.E.P.B.) were transferred to the Company under the Energy Companies Act 1992 in accordance with the Establishment Plan. The value of assets acquired from O.E.P.B. were determined as set out below with subsequent additions at cost.

    (a) Hydro Assets are valued at current economic value at 1.4.92 using the Optimised Deprival Value method as valued by Mr J.W. Park of Royds Consulting Ltd less accumulated depreciation. This is a departure from the historical cost measurement base. Additions during the period are recorded at historic cost.

    (b) Distribution system assets, except standby transformers, are valued at cost less accumulated depreciation. Standby transformers are recorded at a current market value established in 1991, as valued by B. Wilkes an independent valuer, less depreciation. This is a departure from the historical cost measurement base.

    (c) Buildings, Plant and Equipment are recorded at historic cost less accumulated depreciation.



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✨ LLM interpretation of page content

🏭 Information Disclosure by Otago Power Limited (continued from previous page)

🏭 Trade, Customs & Industry
Electricity, Information Disclosure, Otago Power Limited, Accounting Policies
  • J.W. Park, Valued Hydro Assets
  • B. Wilkes, Valued Standby Transformers