New Zealand Gazette – 1998 – No. 145

Page 3501

✨ Statement of Accounting Policies



16 SEPTEMBER
NEW ZEALAND GAZETTE
3501

BULLER ELECTRICITY LIMITED
STATEMENT OF ACCOUNTING POLICIES

  1. MEASUREMENT BASE

    The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on a historical cost basis are followed by the Company with the exception that certain Land and Buildings have been revalued.

    The financial statements of Buller Electricity Limited have been prepared in accordance with the Electricity (Information Disclosure) Regulation 1994.

  2. METHODOLOGY

    The methodology used to determine line function services at March 31 1998 have been based on Electricity Disclosure Guidelines on business procedures issued by the Energy Policy Group Ministry of Commerce Wellington dated June 23 1994.

  3. FIXED ASSETS

    The Group has six classes of fixed assets:

    Land and Buildings
    Distribution System
    Meters & Load Control Equipment
    Plant, Tools and Equipment
    Computer Equipment
    Motor Vehicles

    All fixed assets excluding Land and Buildings are shown at historical cost less accumulated depreciation.

    Freehold land and buildings are 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 as determined by an independent valuer.

  4. DEPRECIATION

    Depreciation is provided on a straight line and diminishing value basis on all tangible fixed assets other than freehold land, at rates calculated to allocate the assets’ cost or valuation less estimated residual value, over their estimated useful lives.

    Major depreciation periods are:

    Distribution Equipment ■ 20-40 years (DV & SL)
    Freehold Buildings ■ 50 years (SL)
    Motor Vehicles ■ 5 years (DV)
    Plant and Equipment ■ 5 to 10 years (DV)
    Office Furniture and Equipment ■ 5 to 10 years (DV)

    Capital contributions towards the cost of reticulating new subdivisions and line extensions are recognised as revenue in the year received.

  5. INCOME TAX

    The income tax expense charged against the profit for the year is the estimated liability in respect of that profit and is calculated after allowance for permanent differences. The company uses the liability method of accounting for deferred taxation and applies this on a comprehensive basis. Future tax benefits attributable to tax losses or timing differences are only recognised when there is virtual certainty of realisation.



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🏭 Buller Electricity Limited Accounting Policies (continued from previous page)

🏭 Trade, Customs & Industry
Accounting Policies, Fixed Assets, Depreciation, Income Tax, Buller Electricity Limited