New Zealand Gazette – 1998 – No. 105

Page 2569

✨ Financial Statements and Accounting Policies



4 AUGUST

NEW ZEALAND GAZETTE

2569

4.7 Financial Instruments

Financial instruments carried on the Statement of Financial Position include cash and bank balances, investments, receivables payables and borrowings. These instruments are carried at their estimated fair value.

The company also has financial instruments with off-balance sheet risk for the primary purpose of reducing its exposure to fluctuations in electricity spot market prices. While these financial instruments are subject to risk that market rates may change subsequent to acquisition, such changes would generally be offset by opposite effects on the items being hedged.

Waitaki Power Ltd. Has entered into electricity price hedging contracts with counter parties in order to minimise the risk of price fluctuations on the electricity spot market. Assets, liabilities, and any unrealised revenues and expenses associated with these instruments as at balance date are not recognised in the financial statements. Realised revenues and expenses are recognised in the statement of financial performance on maturity of the hedging contracts and are incorporated as part of the cost of electricity.

4.8 Contributions received towards capital works are charged to the Statement of Financial Performance and shown as income earned during the year in which they are received.

4.9 Work in progress is valued at cost. Losses on contracts are recognised in valuing work in progress.

  1. CHANGE IN ACCOUNTING POLICY

5.1 A revaluation of Land and Buildings has been undertaken. This has resulted in a reduction in value of these assets of $168,624. All other accounting policies have been applied consistently with previous years.

  1. METHODOLOGY OF SEPARATION OF BUSINESS

6.1 The allocation of costs, revenues, assets and liabilities differ from that contained in the Electricity (Information Disclosure) Regulations 1994. In accordance with the regulation 19 of Electricity (Information Disclosure) Regulations 1994 Waitaki Power Limited has publicly disclosed those variations.



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✨ LLM interpretation of page content

🏭 Financial Statements for Waitaki Power Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statement, Accounting Policies, Financial Instruments, Fair Value, Hedging Contracts, Electricity Spot Market, Capital Works, Work in Progress, Revaluation, Land and Buildings