New Zealand Gazette – 1997 – No. 112

Page 2632

✨ Financial Accounting Policies



NEW ZEALAND GAZETTE

STATEMENT OF ACCOUNTING POLICIES

  1. REPORTING ENTITY

    1.1 Waitaki Power Limited is an unlisted Company registered under the Companies Act 1993. Waitaki Power Limited is a reporting entity for the purpose of the Financial Reporting Act 1993.

  2. SPECIAL PURPOSE FINANCIAL STATEMENTS

    2.1 These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1994.

    The separate activities disclosed by Waitaki Power Limited comprise the Line Business and other business activities including Energy Trading, Appliance Retailing and Contracting.

  3. MEASUREMENT BASE

    3.1 The measurement base adopted is that of historical cost.

    3.2 Accrual accounting is used to match expenses and revenues.

    3.3 Reliance is placed on the fact that the Company is a going concern.

  4. ACCOUNTING POLICIES

    4.1 Accounts Receivable are shown at expected realisable value after providing for doubtful debts.

    4.2 Inventories are valued at the lower of cost and net realisable value. Serial numbered stock is recorded at their individual cost while other stock is recorded at weighted average cost.

    4.3 Distribution and Substation assets in place prior to 1 April 1987 and Motor Vehicles, Plant and Equipment purchases prior to 1 April 1987 have been valued as follows:

    a)  Distribution - current written down book value as at 31 March 1987 less 20%.
b)  Substation Equipment - depreciated replacement cost certified internally by a registered engineer.

All other assets are valued at cost less accumulated depreciation:

Globo Distribution System             5.0 % SL
Distribution System                  5.0 % - 9.5 % DV
Substation Transformers etc             7.5% DV
Substation Load Control Equipment      10.0 % DV
Distribution Transformers              7.5 % DV
Meter                            10.0 % DV - 12.0 % DV
Buildings                        1.0 % SL - 2.5 % SL
Office Equipment & Furniture       12.0 % DV - 50% DV
Plant/Machinery                  10.0 % DV - 50% DV
Motor Vehicles                   15.0 % DV - 26.0 % DV

    4.4 These accounts are exclusive of GST except for Debtors & Creditors.

    4.5 Income tax expense has been calculated using the Liability method. Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.

    4.6 Investments are stated at cost.



Next Page →

PDF embedding disabled (Crown copyright)

View this page online at:


VUW Te Waharoa — PDF NZ Gazette 1997, No 112


NZLII — PDF NZ Gazette 1997, No 112




✨ LLM interpretation of page content

🏭 Statement of Accounting Policies for Waitaki Power Limited

🏭 Trade, Customs & Industry
Accounting Policies, Financial Reporting, Historical Cost, Depreciation, GST, Income Tax