New Zealand Gazette – 1997 – No. 91

Page 2168

✨ Financial Statements Notes



2168 NEW ZEALAND GAZETTE No. 91

Wairarapa Electricity Limited and Subsidiary Companies

Notes to the Financial Statements

  1. Statement of Accounting Policies

The financial statements presented here are for the group comprising Wairarapa Electricity and its subsidiaries.

The financial statements have been prepared in accordance with the requirements of the 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 certain specific accounting policies are identified.

(i) Principles of Consolidation

The consolidated financial statements include those of the holding company and its subsidiaries accounted for using the purchase method. All intercompany balances and unrealised profits and losses on transactions between group companies have been eliminated.

(ii) Inventories

Inventories are stated at the lower of cost and net realisable value. Costs have been assigned to inventory quantities on hand at balance date using weighted average cost.

(iii) Receivables

Trade, Non - Trade and Hire Purchase Receivables are stated at their net estimated realisable value. Hire Purchase Receivables include unearned interest. An adjustment has been made at year end for unearned interest on hire purchase transactions according to the 'Rule of 78'.

An estimate is made for doubtful debts based on a review of all outstanding amounts at year end. Bad debts are written off in the period in which they are identified.

(iv) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation where applicable. Depreciation is provided on all tangible fixed assets, other than freehold land and the distribution system.

Depreciation is provided using rates which write off assets over their expected useful lives as below:

Buildings             40 - 100  years
Generation            10 -  40  years
Plant and equipment    5 -  10  years
Motor vehicles               5  years

Gains and losses on disposal of fixed assets are taken into account in determining the operating result for the year.

Freehold land and improvements are valued at cost or directors' valuation.



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🏭 Financial Statements for Wairarapa Electricity Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Wairarapa Electricity Limited, Electricity, Information Disclosure