✨ Financial Statements
9 SEPTEMBER NEW ZEALAND GAZETTE 3373
NORTHPOWER LTD
STATEMENT OF ACCOUNTING POLICIES
For The Year Ended 31 March 1998
Reporting Entity
Northpower Ltd is a public company formed under the Energy Companies Act 1992 and registered under the Companies Act 1993.
The financial statements have been prepared in accordance with the Financial Reporting Act 1993.
Measurement Base
The general accounting policies recognised as appropriate for the measurement and reporting of results, cashflows and financial position under the historical cost method, as modified by the revaluation of land and buildings, have been followed in the preparation of these financial statements.
Particular Accounting Policies
The following particular accounting policies, which significantly affect the measurement of profit and of financial position, have been applied:
(i) Sales
Sales shown in the Statement of Financial Performance comprise the amounts received and receivable by the Company for goods and services supplied to customers in the ordinary course of business. Sales are stated exclusive of Goods and Services Tax collected from customers.
(ii) Investments
Investments are stated at cost.
(iii) Properties Intended For Sale
Properties intended for sale are classified as current assets if sale is expected within 1 year. Such properties are shown at carrying value unless this exceeds net realisable value.
(iv) Cost of Fixed Assets
The cost of purchased fixed assets is the value of the consideration given to acquire the assets and the value of other directly attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended service.
The cost of assets constructed by the Company includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of production overhead. Costs cease to be capitalised as soon as the asset is ready for productive use.
All fixed assets are initially recorded at cost.
Land and buildings are subsequently valued by independent registered valuers on a three-yearly basis. The basis of the valuation is net current value.
(v) Depreciation
Depreciation is charged on a straight line basis so as to write off the cost or valuation of the fixed assets to their estimated residual value over their expected economic lives. The estimated economic lives are as follows:-
- Distribution system 5-30 years
- Buildings 50 years
- Motor vehicles 5-10 years
- Plant and equipment 5-10 years
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VUW Te Waharoa —
NZ Gazette 1998, No 139
NZLII —
NZ Gazette 1998, No 139
✨ LLM interpretation of page content
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Certification of Financial Statements for Northpower Ltd
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🏭 Trade, Customs & Industry20 August 1998
Electricity, Information Disclosure, Financial Statements, Northpower Ltd, Related Parties, Term Receivables, Accounting Policies, Sales, Investments, Properties, Fixed Assets, Depreciation