New Zealand Gazette – 1997 – No. 111

Page 2607

✨ Financial Statements and Accounting Policies



1 SEPTEMBER NEW ZEALAND GAZETTE 2607

CENTRAL ELECTRIC LIMITED

LINE BUSINESS STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 1997

GENERAL ACCOUNTING POLICIES

The general policies adopted in the preparation of these financial statements are:

  • Unless otherwise stated, the measurement base adopted is historical cost.
  • Reliance has been placed on the assumption that the Line Business is a going concern.
  • Revenues earned are matched with expenses incurred using accrual accounting.

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.

The methodology for allocating costs, revenues, assets and liabilities between activities used in the preparation of these financial statements is that as set out in the Guidelines to the Regulations.

These financial statements relate to the Line Business of Central Electric Limited and incorporate the conveyance of electricity, ownership of works for the conveyance of electricity and the supply of line function services.

SPECIFIC ACCOUNTING POLICIES

Revenue

The revenue shown in the Profit and Loss Account includes the line component of power sales, capital contributions, interest and miscellaneous and sundry income.

All revenue is directly attributable to the Line Business except capital contributions and interest which are allocated on the basis of the relative net asset values.

Expenditure

The expenditure shown in the Profit and Loss Account is derived as follows:

  • National Grid Transmission charges, operating costs, interest and depreciation are directly attributable to the Line Business.
  • Overheads relating to Corporate Services are allocated on the basis of the relative net asset values.
  • Overheads relating to Engineering Services are allocated on the basis of the relative book values of the Line Business’ fixed assets.

Taxation

The taxation charge against the profit for the year is the estimated liability in respect of that profit after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. The Company follows the liability method, partial basis, of accounting for deferred taxation.

Future tax benefits attributable to tax losses or timing differences are only recognised when there is virtual certainty of realisation.

The taxation charge has been allocated on the basis of the Line Business’ contribution to the Company’s net profit before taxation.



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🏭 Central Electric Limited Line Business Accounting Policies (continued from previous page)

🏭 Trade, Customs & Industry
Electricity, Accounting Policies, Financial Statements, Revenue, Expenditure, Taxation