✨ Financial Statements Notes
2714
NEW ZEALAND GAZETTE
No. 110
CENTRALPOWER GROUP
Line Business and Electricity Retailing
Notes to and forming part of the Financial Statements (cont.)
For the Year Ended 31 March 1998
n) Principles of Consolidation
The consolidated financial statements include those of the holding Group 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.
o) Disclosure of methodologies for allocation of costs, revenues, assets and liabilities
The costs, revenues, assets and liabilities of the company have been allocated on the basis consistent with the previous year between the Energy and Line businesses and in accordance with the methodology set out in the Ministry of Commerce Guidelines with the following variations:
Billing and Metering
Billing and metering costs have been allocated 100% to Electricity Retailing for the year ended 31 March 1998. Previously billing and metering costs were allocated between the Line and Energy businesses on a 50:50 basis.
Interest Costs
Interest Costs have been allocated on the basis of total fixed assets. The methodology set out in the Ministry of Commerce Guidelines suggests allocating interest costs on the basis of notional debt base. This departure in allocating interest costs increases the Electricity Retailing business surplus after tax and retained earnings by $976,190 and decreases the Line business surplus after tax and retained earnings by $976,190.
Bank Deposits
Bank Deposits have been allocated on the basis of; 50% based on turnover and 50% based on total fixed assets. The methodology set out in the Ministry of Commerce Guidelines suggests allocating bank deposits on the basis of the working capital base. This departure in allocating bank deposits increases the Line business balance by $1,169,000 and decreases the Electricity Retailing business balance by $1,169,000.
p) Changes In Accounting Policies
There have been no material changes in accounting policies during the year. All policies have been applied on bases consistent with previous years, with the exception of the following:
Customer Contributions – New Subdivisions/Uneconomic lines
Capital contributions from customers towards the cost of reticulating new subdivisions and constructing uneconomic lines in the 1998 financial year are classified as revenue in the statement of financial performance. Previously capital contributions were shown as a decrease in asset values in the statement of financial position. The effect on the financial statements is an increase in Line business revenue of $968,295.
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VUW Te Waharoa —
NZ Gazette 1998, No 110
NZLII —
NZ Gazette 1998, No 110
✨ LLM interpretation of page content
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🏭 Trade, Customs & IndustryElectricity, Financial Statements, Line Business, Retailing, CentralPower Group