New Zealand Gazette – 1998 – No. 116

Page 2840

✨ Financial Statements Notes



2840 NEW ZEALAND GAZETTE No. 116

WAITOMO ENERGY SERVICES LIMITED

Electricity and Other Business Activity

Notes to the Financial Statements

For the Year Ended 31st March 1998

NOTE 1:

NATURE OF COMPANY’S BUSINESS

The Company’s core business is the distribution, generation and retail of electricity and associated services.

STATUTORY BASE

Waitomo Energy Services Ltd is incorporated under the Companies Act 1993 in accordance with the Energy Companies Act 1992. The accounts are prepared in accordance with the Companies Act 1993, the Financial Reporting Act 1993, and the Electricity (Information Disclosure) Regulations 1994.

STATEMENT OF ACCOUNTING POLICIES

The following particular accounting policies which materially affect the measurement of profit and the financial position have been applied:

The general accounting policies recognised as appropriate for the measurement and reporting of earnings and financial position on an historical cost basis are followed except where revaluation of assets are incorporated, and other items disclosed in the accounting policies listed below.

Accrual accounting is used to match expenses with revenues. Reliance is placed on the fact that the Company is a going concern.

(a) Receivables
Receivables are stated at their estimated realisable value.

(b) Fixed Assets
The Company has five classes of fixed assets:

  • Freehold Land
  • Freehold Buildings
  • Motor Vehicles, Plant and Equipment
  • Generation Assets

Land and Buildings were independently valued by Hughes Valuations on 31st March 1997 based on estimated market value.

Generation assets are valued at cost except the headworks, these were independently valued by Grant Samuel on 31st March 1997 to an estimated net present value as at 31st March 1997. This valuation is lower than the depreciated replacement cost of the assets as calculated by Worleys.

Increases in valuations have been transferred to the Revaluation Reserve in Shareholders Equity.

Motor Vehicles, Plant and Equipment and all other assets have been valued at cost less accumulated depreciation.

(c) Staff Leave and Gratuity Payments

Provision is made in respect of the Company’s liability for annual leave and gratuity payments. At the balance date retiring gratuities have been accrued in respect of all employees with more than 10 years service with the Company and aged 45 years or over. Gratuity payment is paid on the retirement of an employee who has at the time of retirement been currently continuously employed by the Company for a period of at least 10 years.



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✨ LLM interpretation of page content

🏭 Waitomo Energy Services Limited Financial Performance Statement (continued from previous page)

🏭 Trade, Customs & Industry
Electricity, Financial Statements, Notes, Accounting Policies, Receivables, Fixed Assets, Staff Leave, Gratuity Payments