New Zealand Gazette – 1997 – No. 97

Page 2264

✨ Financial Statements Accounting Policies



2264 NEW ZEALAND GAZETTE No. 97

WEL ENERGY GROUP LIMITED

(f) Fixed Assets

The distribution system is revalued by independent valuers every three years based on an optimised deprival value basis. Additions to the distribution system are stated at cost. Land and buildings are revalued by independent valuers every three years on the basis of open market value for existing use.

Cost for internally constructed assets comprise direct labour, materials, freight, and a proportion of production overheads based on a normal level of activity. All other fixed assets are recorded at cost less accumulated depreciation.

(g) Depreciation of Fixed Assets

Depreciation of the distribution system and buildings is provided for on a straight line basis over their estimated useful lives as follows:

| Buildings | 3% |
| Distribution system | 4.5% |

Depreciation of other fixed assets is provided for on a diminishing value basis as follows:

| Furniture | 20 - 25% |
| Plant and Equipment | 20 - 30% |
| Vehicles | 25% |

(h) Principles of Line and Energy Business Split

The line and energy businesses form segments of the operations of WEL Energy Group Limited. The allocation of costs, revenue, assets and liabilities was carried out on a basis which reflects the items attributable to each segment of the Group.

Where possible, financial statement items were allocated directly to the line or energy business. In those instances where direct allocation was not possible, the following allocation methodologies were employed:

Corporate Overheads

Corporate overhead costs were allocated as follows:

Personnel and payroll costs based on staff numbers; accounting costs based on complexity (primarily the number of transactions generated); Directors fees and consultancy based on an estimate of time spent on each segment. All other overheads were allocated in proportion to the allocation of other previously allocated overheads.

Property Costs

Allocated using market based rentals.



Next Page →

PDF embedding disabled (Crown copyright)

View this page online at:


VUW Te Waharoa — PDF NZ Gazette 1997, No 97


NZLII — PDF NZ Gazette 1997, No 97




✨ LLM interpretation of page content

🏭 Statement of Accounting Policies for WEL Energy Group Limited (continued from previous page)

🏭 Trade, Customs & Industry
Accounting Policies, Financial Statements, Electricity, WEL Energy Group, Fixed Assets, Depreciation, Line and Energy Business Split