✨ Financial Statements Notes
8 SEPTEMBER NEW ZEALAND GAZETTE 2797
2.7 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the Year Ended 31 March 1997
1. STATEMENT OF ACCOUNTING POLICIES
Special Purpose Financial Statements
These financial statements are made pursuant to Power New Zealand Limited’s obligations under the Electricity (Information Disclosure) Regulations 1994 to report separate financial results in respect of its line business activities and energy business activities. They are in addition to the company’s financial statements published pursuant to the company’s obligations under the Companies Act 1955.
These are the third financial statements made by Power New Zealand Limited pursuant to Regulations 13, 15 and 16.
The Network Business Unit is treated as the core business activity and corporate activities are accounted for through the Network Business Unit and Energy Business Unit financial statements.
In these statements Power New Zealand Limited has adopted the costs and revenue allocation methodology stipulated in the Guidelines to the Regulations in most respects. All departures from the Guidelines are described in Power New Zealand Limited’s Disclosure No. 18.
General Accounting Policies
The general accounting principles as recommended by the Institute of Chartered Accountants in New Zealand for the measurement and reporting of operating surplus on a historical cost basis have been followed by the group with the exception of Distribution Network System Assets which have been revalued to their Optimised Deprival Value (ODV) in accordance with the treatment outlined in the Electricity Disclosure Guidelines. This is more fully explained within the particular accounting policy for Fixed Assets.
Accrual accounting is used to match revenues and expenses. Reliance is placed on the fact that the company is a going concern.
Particular Accounting Policies
The following particular accounting policies which materially affect the measurement of the financial performance and position have been applied:
(a) Income Tax
The group adopts the liability method of tax-effect accounting whereby the income tax expense shown in the statement of financial performance is based on the operating surplus before tax adjusted for any permanent differences.
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VUW Te Waharoa —
NZ Gazette 1997, No 118
NZLII —
NZ Gazette 1997, No 118
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Notes to and Forming Part of the Financial Statements
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💰 Finance & RevenueFinancial Statements, Accounting Policies, Special Purpose, General Accounting, Income Tax