✨ Financial Statements Notes
NEW ZEALAND GAZETTE
No. 91
Wairarapa Electricity Limited and Subsidiary Companies
Notes to the Financial Statements
(x) Allocations to Business Units Per Regulation 19 (continued)
Except where noted below, all costs, revenues, assets and liabilities have been allocated to business units in accordance with the Ministry of Commerce Electricity Information Disclosure Guidelines 1994.
(a) Customer service costs have been apportioned on the basis of percentage of revenue and not percentage of CPU time as provided in the guidelines.
(b) The corporate management costs have been allocated on the basis of Total Funds Employed as this provides a more appropriate measure than an estimate of management and executive time.
(c) Other corporate administration costs have been split 50% to Line Business and 50% to Energy and Other Business.
(d) Information systems costs have been allocated on the basis of actual service and support requests.
(e) Property costs have been directly allocated in so far as this is possible. Shared land and buildings have been allocated on the proportion of Government Valuation allocated to each business unit.
(xi) Changes in Accounting Policies
In the current year the company adopted a policy of valuing the distribution system asset at O.D.V. Previously the distribution system was stated at cost. Details of the financial effect of this change in accounting policy are contained in Note 15.
The directors believe that the introduction of the O.D.V basis of valuation better reflects the value of Wairarapa Electricity Limited’s distribution system.
Apart from the above changes in accounting policies, all policies have been applied on bases consistent with those in the previous reporting period.
2. Segmental Reporting
The group operates predominantly in one geographical segment - the Wairarapa Region.
3. Capital Commitments
As at 31 March 1997, there was $130,000 of capital expenditure contracted but not provided for in the financial statements (1996: $2.375m).
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VUW Te Waharoa —
NZ Gazette 1997, No 91
NZLII —
NZ Gazette 1997, No 91
✨ LLM interpretation of page content
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Financial Statements for Wairarapa Electricity Limited
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🏭 Trade, Customs & IndustryFinancial Statements, Wairarapa Electricity Limited, Electricity, Information Disclosure, Fixed Assets, Distribution System, Maintenance, Electricity Sales, Income Tax, Financial Instruments, Construction Contracts, Allocations to Business Units