✨ Financial Statements Notes
MARLBOROUGH ELECTRIC LIMITED
FINANCIAL STATEMENTS PREPARED IN ACCORD WITH THE ELECTRICITY (INFORMATION DISCLOSURE) REGULATIONS 1994
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 1997
1.STATEMENT OF ACCOUNTING POLICIES
These financial statements have been prepared in accordance with the requirements of regulation 6 of Electricity (Information Disclosure) Regulations 1994.
The financial statements have been prepared on the basis of historical cost with the exception of certain items for which specific accounting policies are identified.
The financial statements comprise separate statements of financial performance and financial position for Network Operations, the Generation Business and Energy Trading/Other.
There are also additional activities of the company that are not required to be reported under the regulations.
1.1 GOODS AND SERVICES TAX (GST)
The statement of financial performance has been prepared so that all components are stated exclusive of GST.
All items in the statement of financial position are stated net of GST with the exception of receivables and payables which include GST invoiced.
1.2 INCOME TAX
The taxation charge is the estimated liability payable in respect of the accounting profit for the year adjusted for non assessable income and non deductible costs and including any adjustments in respect of prior years. Deferred taxation is not recognised as the timing differences are not expected to reverse within the foreseeable future. This is the partial basis of accounting for deferred taxation.
1.3 RECEIVABLES
Receivables are stated at the amount they are expected to realise. An estimate for doubtful debts is made and bad debts are written off during the year in which they are identified.
1.4 INVENTORIES
Inventories are valued on the basis of the lower of cost and net realisable value. Cost is determined on the basis of weighted average of purchase costs. Due allowance is made for damaged and obsolete inventory. Work in progress comprises the cost of direct materials and labour together with chargeable overheads.
1.5 FIXED ASSETS AND DEPRECIATION
All fixed assets are recorded at a cost.
The cost of assets constructed by the Company includes all materials used in construction, direct labour and a proportion of related overheads.
Capital contributions are credited against the cost of reticulation assets.
Where commitments arise offshore for capital purchases the exchange rates are fixed forward to minimise foreign currency risk.
All costs and exchange variations are included in the capitalised cost of the asset.
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VUW Te Waharoa —
NZ Gazette 1997, No 141
NZLII —
NZ Gazette 1997, No 141
✨ LLM interpretation of page content
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Financial Statements of Marlborough Electric Limited
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🏭 Trade, Customs & IndustryElectricity, Financial Statements, Accounting Policies, GST, Income Tax, Receivables, Inventories, Fixed Assets, Depreciation, Marlborough Electric Limited