New Zealand Gazette – 1998 – No. 138

Page 3343

✨ Accounting Policies



9 SEPTEMBER NEW ZEALAND GAZETTE 3343

PARTICULAR ACCOUNTING POLICIES:

The Financial Statements have been prepared on a GST exclusive basis, except for debtors and creditors.

INCOME RECOGNITION:

Electricity sales represent consumer usage as billed during the reporting period. An accrual has been made for unbilled electricity sales. The recognition of the revenue from line charges in advance has been deferred as a current liability.

INVENTORIES:

Inventories are stated at the lower of cost (calculated on an average cost basis) or estimated realisable value. Work-in-Progress is valued at net realisable value.

FINANCIAL INSTRUMENTS:

The Company is party to financial instrument arrangements as part of its’ every day operations, including instruments which have been recognised in these financial reports.

Revenues and Expenses in relation to all financial instruments are recognised in the Statement of Financial Performance.

All financial instruments, including cash and bank, and accounts payable are recognised at their fair values. The Company has not entered into any off-balance sheet instruments.

The following methods and assumptions were used to value each class of financial instrument:

Investments: Investments are stated at the lower of cost and net realisable value.

Accounts Receivable: Accounts receivable are stated at expected realisable value after providing for doubtful and uncollectible debts.

FIXED ASSETS:

The fixed assets of the “Other” divisions have been recorded at cost less depreciation.

Network assets have been valued using the Optimised Deprival Value as at 31 March 1998. Valuation was carried out by KPMG Peat Marwick, Wellington. The valuation cycle is three years.



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✨ LLM interpretation of page content

💰 Statement of Accounting Policies for CHB Power Holdings Limited (continued from previous page)

💰 Finance & Revenue
Accounting Policies, Financial Statements, CHB Power Holdings Limited, Network Division, Energy, Retail, Contracting, Servicing Divisions, Electricity (Information Disclosure) Regulations 1994, Financial Reporting Act 1993, Energy Companies Act 1992, Historical Cost Method, Revaluation of Network Assets, Going Concern, Accrual, Periodic Reporting, Ministry of Commerce, Energy Policy Group