New Zealand Gazette – 1998 – No. 108

Page 2681

✨ Financial Statements



7 AUGUST

NEW ZEALAND GAZETTE

2681

CENTRAL ELECTRIC LIMITED

GENERATION BUSINESS STATEMENT OF ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 MARCH 1998

GENERAL ACCOUNTING POLICIES

The general policies adopted in the preparation of these financial statements are:

  • Unless otherwise stated, the measurement base adopted is historical cost.

  • Reliance has been placed on the assumption that the Line Business is a going concern.

  • Revenues earned are matched with expenses incurred using accrual accounting.

SPECIAL PURPOSE FINANCIAL STATEMENTS

These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1994.

The methodology for allocating costs, revenues, assets and liabilities between activities used in the preparation of these financial statements is that as set out in the Guidelines to the Regulations.

These financial statements relate to the generation business of Central Electric Limited and incorporate the generation of electricity, by Central Electric Limited, where the capacity is greater than 10MW.

SPECIFIC ACCOUNTING POLICIES

Revenue

The revenue shown in the Profit and Loss Account includes power sales of internally generated electricity, capital contributions, interest and miscellaneous and sundry income.

All revenue is directly attributable to the Generation Business except interest and other corporate income which is allocated on the basis of the relative net asset values.

Expenditure

The expenditure shown in the Profit and Loss Account is derived as follows:

  • Electricity Purchases, Operating costs, interest and depreciation are directly attributable to the Generation Business.

  • Overheads relating to Corporate Services are allocated on the basis of the relative net asset values.

Taxation

The taxation charge against the profit for the year is the estimated liability in respect of that profit after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. The Company follows the liability method, partial basis, of accounting for deferred taxation.

Future tax benefits attributable to tax losses or timing differences are only recognised when there is virtual certainty of realisation.

The taxation charge has been allocated on the basis of the Generation Business’ contribution to the Company’s net profit before taxation.



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🏭 Central Electric Limited Financial Performance (continued from previous page)

🏭 Trade, Customs & Industry
Energy Business, Financial Performance, Revenue, Expenditure, Profit