✨ Electricity Financial Statements
2802 NEW ZEALAND GAZETTE No. 113
NOTES TO AND FORMING PART OF THE LINE BUSINESS
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH, 1998
ENTITY STATEMENT: Electricity Invercargill Limited was incorporated as a Local Authority Trading Enterprise on 30 June, 1991 at which time it purchased the electricity distribution undertaking of the Invercargill City Council Municipal Electricity Department and commenced trading on 1 July, 1991. On 28 August, 1996 the Invercargill City Council sold all the shares in Electricity Invercargill Limited to a wholly owned subsidiary, Invercargill City Holdings Limited (Holdco).
United Electricity Limited (in which Electricity Invercargill Limited has a 13% interest) purchased the electricity retailing activities on 1 November, 1993. PowerNet Limited, owned 50/50 with The Power Company, assumed complete responsibility for the day to day management of the Electricity Invercargill Limited network on 1 March, 1994. The Line Business is the consolidation of Electricity Invercargill Limited’s share in PowerNet Limited excluding external contracting which is reported separately, and Electricity Invercargill Limited.
NOTE 1. STATEMENT OF ACCOUNTING POLICIES
GENERAL ACCOUNTING POLICIES
The general accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on a modified historical cost basis are followed by the Company in the preparation of this report. The reporting requirements set down in the Electricity (Information Disclosure) Regulations 1994 have been complied with. Accrual accounting is used to match expenses and revenues and reliance is placed on the fact that the Company is a going concern.
PARTICULAR ACCOUNTING POLICIES
The following particular accounting policies which materially affect the measurement of profit and the financial position have been applied:
(a) Basis of Consolidation
Electricity Invercargill Limited’s 13% interest in United Electricity Limited has been excluded from these accounts. The interest in PowerNet Limited has been accounted for with a line by line consolidation of revenue and expenses and the elimination of all significant inter-company transactions. The company’s share of profits and losses in PowerNet Limited is reflected in the Consolidated Operating Statement and Balance Sheet divided into line business and external contracting as per policy (b) below.
(b) Costs and Revenue
Costs and Revenue are those directly attributable to the Line Business of Electricity Invercargill Limited. The external contracting operations of PowerNet Limited have been calculated by determining direct costs and revenue where possible, with overheads being allocated on the basis of percentage of revenue.
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VUW Te Waharoa —
NZ Gazette 1998, No 113
NZLII —
NZ Gazette 1998, No 113
✨ LLM interpretation of page content
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Electricity Information Disclosure for Invercargill Limited
(continued from previous page)
🏭 Trade, Customs & Industry17 June 1998
Electricity, Financial Statements, Information Disclosure, Invercargill Limited, Audit
🏭 Notes to and forming part of the Line Business Financial Statements
🏭 Trade, Customs & IndustryElectricity, Financial Statements, Accounting Policies, Invercargill Limited, PowerNet Limited