Financial Statements Notes




5 DECEMBER NEW ZEALAND GAZETTE 4077

Notes to the Financial Statements

For The Year Ended 30 June 1997

1. Statement Of Accounting Policies

Reporting Entity

Wanganui Gas Limited is a public company formed in accordance with the Energy Companies Act 1992 and registered under the Companies Act 1993. For the purpose of preparing Disclosure accounts in accordance with the Gas (Information Disclosure) Regulations 1997, the annual accounts of Wanganui Gas Limited have been divided into two entities, Distribution and Retail. The balance of Wanganui Gas Limited’s accounts have not been disclosed as it pertains to appliance trading activity.

As required by the Gas (Information Disclosure) Regulations 1997, "Distribution" involves the ownership, and maintenance of a gas distribution system, and conveyance of gas via the system. "Retail" involves supply of gas to consumers.

The gas information disclosures and financial statements of Wanganui Gas Limited have been prepared in accordance with the Gas (Information Disclosure) Regulations 1997.

Methodology of Separation of Business

Methodology used in relation to the allocation of costs, revenue, assets and liabilities between Retail and Distribution businesses will be available for public inspection from 1 January 1998.

General Accounting Policies

The general accounting principles recognised as appropriate for the measurement and reporting of results and financial position on an historical cost basis have been followed, with the exception of distribution network assets which have been valued at optimal deprival value. Accrual accounting is used to match expenses and revenues. Reliance is placed on the fact that the Company is a going concern.

Particular Accounting Policies

The following particular accounting policies which materially affect the measurement of results and financial position have been applied:

Accrued Gas Sales

Gas sales include an accrual for gas supplied but not billed at the end of the financial period.

Capital Contributions

Capital contributions received from customers are recognised as income in the period received.

Accounts Receivable

Accounts Receivable are stated at their estimated realisable value.



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🏭 Notes to the Financial Statements for Wanganui Gas Limited (continued from previous page)

🏭 Trade, Customs & Industry
5 December 1997
Financial statements, Accounting policies, Gas (Information Disclosure) Regulations 1997, Wanganui Gas Limited