New Zealand Gazette – 1997 – No. 105

Page 2449

✨ Financial Statements Notes



KING COUNTRY ENERGY LIMITED

NOTES TO THE FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH

THE ELECTRICITY INFORMATION DISCLOSURE REGULATIONS 1994

FOR THE YEAR ENDED 31 MARCH 1997

  1. STATEMENT OF ACCOUNTING POLICIES
    The Financial Statements presented here are for the reporting entity King Country Energy Limited.
    The Financial Statements have been prepared in accordance with the requirements of the Companies Act 1993 and 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.

    ACCOUNTING PERIOD
    These financial statements cover trading for the year to 31 March 1997.

    DISTINCTION BETWEEN CAPITAL AND REVENUE EXPENDITURE
    Capital Expenditure is all expenditure on the creation of a new asset and any expenditure which results in a significant improvement of the original function of an existing asset.
    Revenue Expenditure is expenditure which restores an asset to its original condition and all expenditure incurred in maintaining and operating the Company’s business.

    ELECTRICITY SALES
    Electricity meters are read on the basis of constant cycles each year. Account has been taken of the unbilled sales at the end of the financial period which have been accrued.

    FINANCIAL INSTRUMENTS
    The Company has entered into electricity price hedging contracts with electricity generators in order to minimise the risk of price fluctuations on the electricity spot market. Assets, liabilities, and any unrealised revenues and expenses associated with these instruments as at balance date are not recognised in the financial statements. Realised revenues and expenses are recognised in the statement of financial performance on maturity of the hedging contracts and are incorporated as part of the cost of wholesale electricity.

    Full disclosure of information about electricity price hedging contracts to which the Company is a party is provided in note 13.

    ACCOUNTS RECEIVABLE
    Accounts Receivable are stated at expected net realisable value. An estimate is made for doubtful debts based on a review of all outstanding amounts at year end. Bad debts are written off during the period in which they are identified.

    CAPITAL CONTRIBUTIONS
    Capital Contributions are taken to income when received.

    INVENTORIES
    Inventories are stated at the lower of cost or net realisable value. Cost is determined at average in store prices. Allowance is made for obsolescence where necessary.



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✨ LLM interpretation of page content

🏭 Notes to the Financial Statements of King Country Energy Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Accounting Policies, Electricity Sales, Hedging Contracts, Accounts Receivable, Capital Contributions, Inventories