✨ Financial Statements Notes
3048 NEW ZEALAND GAZETTE No. 131
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 1997
- STATEMENT OF ACCOUNTING POLICIES
a. Reporting Entity
Egmont Electricity is a private company registered under the Companies Act 1993.
The financial statements of Egmont Electricity Limited have been prepared for the purposes of the Electricity (Disclosure Requirements) Act 1994.
b. Measurement Base
The measurement base adopted is that of historical cost except for the revaluation of certain assets. Accrual accounting is used to match expenses and revenue. The accounts have been prepared exclusive of Goods and Services Tax.
c. Specific Accounting Policies
The following specific accounting policies which significantly affect the measurement of profit and of financial position, have been applied:
COMPLIANCE WITH THE DISCLOSURE GUIDELINES
The methodology applied for the allocation of costs, revenues, assets and liabilities has been in accordance with the Guidelines except for the following departures:
Line losses costs of $556,200 are allocated to the line business on the basis that the losses occur through the transportation of electricity over the line operator’s network. The line business compensates the energy business with the value of those losses which are costed at the wholesale price of electricity. The line operator recovers the cost of line losses through the customer network charge.
Marketing costs are shared between the line business and the energy business. For this financial year, 52.7% of the marketing costs were allocated to the line business. The allocation is made on the basis of benefits derived from expenditure on marketing related activities.
Inventory is allocated 100% to the line business. The allocation is made at this level to reflect the fact that the items held in the store are spares for the reticulation system.
The treatment of any one-off costs associated with the potential sale of a company is not specified in the Guidelines. As detailed in note 14, Egmont Electricity is the subject of a purchase offer from Powerco Ltd. Any costs incurred as a result of this sale process have been charged 100% to the Lines business.
(ii) RECOGNITION OF REVENUE
Electricity sales represent customer usage during the financial period. An allowance has been included in the sales figure for unread meters as at 31 March 1997.
(iii) DEPRECIATION
Next Page →
PDF embedding disabled (Crown copyright)
View this page online at:
VUW Te Waharoa —
NZ Gazette 1997, No 131
NZLII —
NZ Gazette 1997, No 131
✨ LLM interpretation of page content
🏭
Statement of Financial Position for Egmont Electricity Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Revenue Recognition, Depreciation, Egmont Electricity Limited