✨ Financial Statements Accounting Policies
3138 NEW ZEALAND GAZETTE No. 127
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 1998
SCANPOWER Limited ("SCANPOWER") is a public company registered under the Companies Act 1993. These financial statements have been prepared in accordance with Regulations 6(2) and 6(3) of the Electricity (Information Disclosure) Regulations 1994. The financial statements comprise separate Statements of Financial Performance and Financial Position for the Line and Energy Businesses as required by Clause 6(2)(3) of the Electricity (Information Disclosure) Regulations 1994. These businesses operate in and around the Southern Hawkes Bay area. The general accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on an historical cost basis are followed by the Company, with the exception that certain fixed assets have been revalued.
Methodology and Separation of Businesses
SCANPOWER has generally followed the Electricity Disclosure Guidelines and Pricing Methodologies as issued by the Energy Policy Group of the Ministry of Commerce in 1994.
Transmission costs are allocated back to the network. In respect of discounts they are allocated to each business based on the profits generated by those businesses.
The following particular accounting policies which materially affect the measurement of profit and the financial position have been applied.
a) Income Recognition
Electricity sales include all amounts billed during the financial period as determined by meter readings or assessed meter readings. An accrual is also made for the estimate of electricity used but unbilled at the end of the financial period. The gross value of electricity sales as determined by this method is then disclosed by the line and energy components in the relevant statements.
b) Receivables
Receivables are stated at their estimated realisable value. An estimate is made for doubtful receivables based on a review of all outstanding amounts at year end. Bad debts are written off during the year in which they are identified.
c) Inventories
Inventories are valued at the lower of “weighted average cost”, and net realisable value.
d) Fixed Assets
Fixed assets are initially recorded at cost.
Freehold land & buildings are subsequently revalued on a cyclical basis with no individual fixed asset being included at a valuation undertaken more than three years previously. Valuations are at net current value.
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VUW Te Waharoa —
NZ Gazette 1998, No 127
NZLII —
NZ Gazette 1998, No 127
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Certificate of Financial Statements for Scanpower Limited
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🏭 Trade, Customs & Industry14 August 1998
Financial Statements, Accounting Policies, Electricity Information Disclosure, Scanpower Limited, Regulations