✨ Financial Statements Notes
NEW ZEALAND GAZETTE
22 SEPTEMBER
CENTRALPOWER LIMITED
Line Business and Electricity Retailing
Notes to the Financial Statements (cont.)
For the Year Ended 31 March 1997
h) Accounts Receivable
Accounts receivable have been valued at estimated realisable value after making provision for doubtful debts.
i) Leases
Operating lease payments, where the lessors effectively retain substantially all the risks and benefits of ownership of the leased items, are included in the determination of the operating surplus in equal instalments over the lease term.
j) Goods And Services Tax (GST)
All items shown in the financial statements are net of Goods and Services tax, except for receivables and payables which are shown at the gross amount.
k) Research Costs
Costs incurred on all research projects are written off as they are incurred.
l) Financial Instruments
Financial instruments recognised in the statement of financial position include deposits with banks, trade receivables, other receivables, investments and debt. These instruments are entered into in the normal course of business.
The Company does not undertake speculative trading transactions. Accordingly, financial instruments are "marked to market" for disclosure purposes but are not adjusted in the financial statements.
Surpluses and deficits on electricity hedging contracts for differences are recognised in the period to which an invoice relates. Contracts for differences are not undertaken for speculative purposes.
m) Disclosure of methodologies for allocation of costs, revenues, assets and liabilities
The costs, revenues, assets and liabilities of the company have been allocated between the Energy and Line businesses in accordance with the methodology set out in the Ministry of Commerce Guidelines with the following variations:
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Billing and metering costs are allocated between the Line and Energy businesses on a 50:50 basis.
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Allocation of sundry accruals, between the Line and Energy businesses, is on the basis of cost of sales.
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Allocation of indirect rates costs, between the Line and Energy businesses, is on the basis of floor area occupied.
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Allocation of indirect cleaning costs, between the Line and Energy businesses, is on the basis of floor area occupied.
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VUW Te Waharoa —
NZ Gazette 1997, No 135
NZLII —
NZ Gazette 1997, No 135
✨ LLM interpretation of page content
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CentralPower Limited Financial Statements
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🌾 Primary Industries & ResourcesElectricity, Financial Statements, Line Business, Electricity Retailing, Accounting Policies, Income Recognition, Investments, Fixed Assets, Depreciation, Income Tax, Inventories, Contributions