✨ Financial Statements Policies
2988 NEW ZEALAND GAZETTE No. 127
(b) Expenditure
Expenditure shown in the Operating Statement is derived as follows:
Expenditure for the Generation Business is directly attributable to the corporatised Generation Business of Waipori Power Generation Ltd.
Line Business
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Transmission charges, employee remuneration, administration and operating expenses are directly attributable to the Line Business.
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Maintenance is provided by the Company’s Contracting Group and external contractors at market rates to the Line Business group.
Contracting Business
- Employee remuneration, materials/plant, administration and operating expenses are directly attributable to the Contracting Business.
Indirect costs, with the exception of unallocatable overheads, are charged on an activity basis to both the Line and Contracting Businesses.
Unallocatable overheads are charged to the Line and Contracting Businesses on a basis of staff numbers and asset value.
(c) Dividends
Dividends for each of the businesses have been calculated in accordance with the Company’s dividend policy.
(d) Allocation of Assets and Liabilities
Assets and liabilities are those which are directly related to the respective business.
(e) Current Assets
Accounts receivable are those directly related to the respective business and are valued at expected realisable value less provision for doubtful debts.
(f) Fixed Assets
Furniture and fittings, plant and equipment, and motor vehicles are valued at market value as at 31 December 1992 and have been adjusted by accumulated depreciation, subsequent additions at cost and disposals at book value.
Generation assets are valued at the 1 July 1993 value recommended by Southpac Corporation Ltd following its independent study of the value of Waipori Power Generation Ltd, and have been adjusted by accumulated depreciation, subsequent additions at cost and disposals at book value.
Network assets have been revalued to the 1 January 1997 ODV valuation of those assets. This valuation was carried out in accordance with the statutory requirements of the Electricity (Information Disclosure) Regulations 1994, prepared and certified by Coopers and Lybrand.
(g) Distinction Between Capital and Revenue Expenditure
Capital expenditure is defined as all expenditure on the creation of a new asset, and any expenditure which results in a significant improvement to the original function of an existing asset.
Revenue expenditure is defined as expenditure which maintains an asset in working condition and expenditure incurred in maintaining and operating the Company.
(h) Depreciation
Fixed assets are depreciated on the basis of valuation or cost price less estimated residual value on a straight line basis over their estimated useful life. Except for buildings and dams, no assets are deemed to have an economic life in excess of 25 years.
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VUW Te Waharoa —
NZ Gazette 1997, No 127
NZLII —
NZ Gazette 1997, No 127
✨ LLM interpretation of page content
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Statement of Accounting Policies for Dunedin Electricity Ltd
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Financial Statements, Electricity, Dunedin Electricity Ltd, Electricity (Information Disclosure) Regulations 1994