New Zealand Gazette – 1998 – No. 123

Page 2959

✨ Financial Statements Notes



KING COUNTRY ENERGY LIMITED AND SUBSIDIARY

NOTES TO THE FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH

THE ELECTRICITY INFORMATION DISCLOSURE REGULATIONS 1994

FOR THE YEAR ENDED 31 MARCH 1998

  1. STATEMENT OF ACCOUNTING POLICIES

The reporting entity is King Country Energy and the financial statements presented here are for King Country Energy and its subsidiary KCE Mangahao Limited.
The Financial Statements have been prepared in accordance with the requirements of the Companies Act 1993 and the Financial Reporting Act 1993.
The Financial Statements have been prepared on the basis of historical cost with the exception of certain items for which specific accounting policies are identified.

ACCOUNTING PERIOD

These financial statements cover trading for the year to 31 March 1998.

DISTINCTION BETWEEN CAPITAL AND REVENUE EXPENDITURE

Capital Expenditure is all expenditure on the creation of a new asset and any expenditure which results in a significant improvement of the original function of an existing asset.
Revenue Expenditure is expenditure which restores an asset to its original condition and all expenditure incurred in maintaining and operating the Company’s business.

ELECTRICITY SALES

Electricity meters are read on the basis of constant cycles each year. Account has been taken of the unbilled sales at the end of the financial period which have been accrued.

FINANCIAL INSTRUMENTS

The Company has entered into electricity price hedging contracts with electricity generators in order to minimise the risk of price fluctuations on the electricity spot market. Assets, liabilities, and any unrealised revenues and expenses associated with these instruments as at balance date are not recognised in the financial statements. Realised revenues and expenses are recognised in the statement of financial performance on maturity of the hedging contracts and are incorporated as part of the cost of wholesale electricity.

Full disclosure of information about electricity price hedging contracts to which the Company is a party is provided in note 14.

ACCOUNTS RECEIVABLE

Accounts Receivable are stated at expected net realisable value. An estimate is made for doubtful debts based on a review of all outstanding amounts at year end. Bad debts are written off during the period in which they are identified.

CAPITAL CONTRIBUTIONS

Capital Contributions are taken to income when received.

NEW ZEALAND GAZETTE



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🏭 King Country Energy Limited Financial Performance (continued from previous page)

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Financial Statements, Electricity, Revenue, Expenses, Operating Surplus, Income Tax, King Country Energy Limited