✨ Statement of Accounting Policies
2822 NEW ZEALAND GAZETTE No. 115
Statement of Accounting Policies For the Year Ended 31 March 1998
These financial statements are prepared and presented in accordance with the Electricity (Information Disclosure) Regulations 1994.
A. General Accounting Policies
The general accounting policies recognised as appropriate for the measurement and reporting of results and the financial position have been followed in the preparation of these financial statements.
The historical cost method, as modified by the revaluation of certain assets, has been followed.
The Electricity Disclosure Guidelines have been followed in the preparation of these financial statements.
B. Particular Accounting Policies
The particular accounting policies which have a significant effect on the financial performance and financial positions are as follows:
(a) Income Tax
The income tax expense charged to the Statement of Financial Performance includes both current and deferred tax. Deferred tax is calculated using the liability method, and is accounted for using the comprehensive basis, except that deferred tax is not provided on asset revaluations of the distribution system.
(b) Trade Debtors
Trade debtors are stated at their estimated realisable value after adequate provision for doubtful debts. Bad debts are written off in the period they are identified.
(c) Revenue Recognition
Line and energy revenues include an accrual for charges incurred by customers but not billed at balance date.
(d) Inventories
Inventories are valued at the lower of weighted average cost and net realisable value. Work in Progress is valued at cost comprising direct labour, materials, freight and a proportion of production overheads based on a normal level of activity.
(e) Investments in Associates
The equity method has been used for those entities in which the Group has a significant but not controlling interest.
Investments are valued at cost plus the Group's share of retained earnings.
(f) Financial Instruments
Financial instruments with off-balance sheet risk have been entered into for the primary purpose of reducing exposure to fluctuations in electricity prices. While 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 hedged.
(g) 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.
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VUW Te Waharoa —
NZ Gazette 1998, No 115
NZLII —
NZ Gazette 1998, No 115
✨ LLM interpretation of page content
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Statement of Financial Performance and Financial Position by WEL Energy Group Limited
(continued from previous page)
🏭 Trade, Customs & Industry9 July 1998
Electricity, Financial Performance, Financial Position, Revenue, Expenses, Profit, Assets, Liabilities, WEL Energy Group