New Zealand Gazette – 1997 – No. 133

Page 3121

✨ Financial Statements Accounting Policies



19 SEPTEMBER NEW ZEALAND GAZETTE 3121

PARTICULAR ACCOUNTING POLICIES:

The Financial Statements have been prepared on a GST exclusive basis, except for debtors and creditors.

INCOME RECOGNITION:

Electricity sales represent consumer usage as billed during the reporting period. An accrual has been made for unbilled electricity sales. The recognition of the revenue from line charges in advance has been deferred as a current liability.

INVENTORIES:

Inventories are stated at the lower of cost (calculated on an average cost basis) or estimated realisable value. Work-in-Progress is valued at net realisable value.

FINANCIAL INSTRUMENTS:

The Company is party to financial instrument arrangements as part of its’ every day operations, including instruments which have been recognised in these financial reports.

Revenues and Expenses in relation to all financial instruments are recognised in the Statement of Financial Performance.

All financial instruments, including cash and bank, and accounts payable are recognised at their fair values. The Company has not entered into any off-balance sheet instruments.

The following methods and assumptions were used to value each class of financial instrument:

Investments: Investments are stated at the lower of cost and net realisable value.

Accounts Receivable: Accounts receivable are stated at expected realisable value after providing for doubtful and uncollectible debts.

FIXED ASSETS:

The fixed assets of the “Other” divisions have been recorded at cost less depreciation.

Network assets have been valued using the Optimised Deprival Value as at 31 March 1995. Valuation was carried out by KPMG Peat Marwick, Wellington. The valuation cycle is three years.



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🏭 Financial Statement Disclosure by Line Owner (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Line Business, Electricity, Information Disclosure, Accounting Policies