New Zealand Gazette – 1997 – No. 90

Page 2147

✨ Financial Statements



18 AUGUST

NEW ZEALAND GAZETTE

2147

ALPINE ENERGY LIMITED

FINANCIAL STATEMENTS PREPARED IN ACCORDANCE 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 for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1994.

The financial information presented is for the line business and “other” business activities. “Other” activities represent the Electricians’ business, as described within section 6(3) of the Electricity (Information Disclosure) Regulations 1994. There are also additional activities of the Company that are not required to be reported under the Regulations.

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.

(a) Customer Contributions

Contributions from customers, in relation to the construction of new lines for the network, and contributions from district councils, towards the costs of replacing overhead lines with underground cables, are accounted for as income in the year in which they are received.

(b) Capital and Operating Expenditure

Capital expenditure relates to expenditure incurred in the creation of a new asset and expenditure incurred on existing reticulation system assets to the extent the system is enhanced.

Operating expenditure relates to expenditure which restores an asset closer to its original condition and includes expenditure incurred in maintaining and operating the fixed assets of the Company.

(c) Depreciation

Depreciation is charged as follows:

  • Network Reticulation System: straight line over useful lives from 10 to 80 years
  • Buildings: 1 to 2.5% of cost
  • Motor Vehicles: 20 to 31.2% on diminishing value
  • Plant and Office Equipment: 8 to 60% on diminishing value

Depreciation for taxation purposes recognises that:

  • Additions to the network reticulation system exclude any allocation of indirect costs.
  • Only 80% of the book value of the Globo distribution system at 1 April 1987 is depreciable.

Change in Accounting Policy
In previous years the depreciation charge for the network reticulation assets was calculated by applying taxation depreciation rates to the historical book value. Following the revaluation of these assets to net current value, equivalent to their optimised deprival value (ODV), the depreciation charge is calculated on a straight line basis so as to allocate the cost of the assets or the revalued amounts over their useful lives. The effect of this change is to increase the depreciation charge for lines by $272,000.



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