✨ Financial Statements
3448
NEW ZEALAND GAZETTE
No. 142
Wairarapa Electricity Limited and Subsidiary Companies
Notes to the Financial Statements
(x) Allocations to Business Units Per Regulation 19 (continued)
Except where noted below, all costs, revenues, assets and liabilities have been allocated to business units in accordance with the Ministry of Commerce Electricity Information Disclosure Guidelines 1994.
(a) Customer service costs have been apportioned on the basis of percentage of revenue and not percentage of CPU time as provided in the guidelines.
(b) The corporate management costs and dividends paid have been allocated to each business unit on the basis of total funds employed and not on the basis of average funds employed as recommended in the guidelines. The total funds employed excludes current tax payable from current liabilities to avoid circular recalculation. The effect of this exclusion is not material to the allocation basis.
(c) Other corporate administration costs have been split 50% to Line Business and 50% to Energy and Other Business.
(d) Information systems costs have been allocated on the basis of actual service and support requests, hard disk allocation and actual time spent on business units.
(e) Property costs have been directly allocated in so far as this is possible. Shared land and buildings have been allocated on a percentage of occupancy to each business unit.
(xi) Changes in Accounting Policies
All policies have been applied on bases consistent with those used in the previous reporting period.
- Change in Allocation between Business Units
In previous years line charge income in the Lines Business contained a component for the recovery of system losses. Income for the recovery of system losses correctly belongs to Energy and Other Business. This income has been included in Energy and Other Business in the current year.
The effect of this change in 1998 is to decrease Line Business and increase Energy and Other Business surplus by $745,469 (1997: $732,020). In order to provide users of these statements consistency, the company has restated below the previous year's financial performance measures, taking into account the above change in allocation:
| 1997 | 1996 | 1995 | |
|---|---|---|---|
| Accounting Return on Total assets | 9.60% | 5.60% | 4.10% |
| Accounting Return on Equity | 7.31% | 4.53% | 3.36% |
| Accounting Rate of Profit (including revaluation) | 27.39% | 4.05% | 2.57% |
| Accounting Rate of Profit (excluding revaluation) | 8.07% | 4.05% | 2.57% |
The prior year comparatives in both Part I and Part II have not been restated to reflect the above changes.
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VUW Te Waharoa —
NZ Gazette 1998, No 142
NZLII —
NZ Gazette 1998, No 142
✨ LLM interpretation of page content
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Wairarapa Electricity Limited Financial Statements
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