✨ Financial Statements Explanation
18 SEPTEMBER NEW ZEALAND GAZETTE 3609
Generation Business expenditure is directly attributable to the corporatised Generation Business of Waipori Power Generation Ltd.
Contracting Business
- Employee remuneration, materials/plant, administration and operating expenses are directly attributable to the Contracting Business.
Indirect costs, with the exception of unallocatable overheads, are charged on an activity basis to both the Line and Contracting Businesses.
Unallocatable overheads are charged to the Line and Contracting Businesses on a basis of staff numbers and asset value.
(c) Dividends
Dividends for each of the businesses have been calculated in accordance with the Company’s dividend policy.
(d) Allocation of Assets and Liabilities
Assets and liabilities are those which are directly related to the respective business.
(e) Current Assets
Accounts receivable are those directly related to the respective business and are valued at expected realisable value less provision for doubtful debts.
(f) Fixed Assets
Network assets have been revalued to the 1 January 1997 Optimised Deprival Valuation of those assets. This valuation was carried out in accordance with the statutory requirements of the Electricity (Information Disclosure) Regulations 1994, prepared and certified by Coopers and Lybrand.
Generation assets are valued at the 1 July 1993 value recommended by Deloitte Touche Tohmatsu and reviewed by Southpac Corporation Ltd following its independent study of the value of Waipori Power Generation Ltd, and have been adjusted by accumulated depreciation, subsequent additions at cost and disposals at book value.
Furniture and fittings, plant and equipment, and motor vehicles are valued at market value as at 31 December 1992 and have been adjusted by accumulated depreciation, subsequent additions at cost and disposals at book value.
(g) Distinction Between Capital and Revenue Expenditure
Capital expenditure is defined as all expenditure on the creation of a new asset, and any expenditure which results in a significant improvement to the original function of an existing asset.
Revenue expenditure is defined as expenditure which maintains an asset in working condition and expenditure incurred in maintaining and operating the Company.
(h) Depreciation
Fixed assets are depreciated on the basis of valuation or cost price less estimated residual value on a straight line basis over their estimated useful life. Except for buildings and dams, no assets are deemed to have an economic life in excess of 25 years.
Rates used are:
| Asset Type | Rate (%) |
|---|---|
| Dams | 1% |
| Buildings | 1 - 2.5% |
| Plant and equipment | 2.5 - 15% |
| Network assets | 4 - 5% |
| Furniture and fittings | 10% |
| Computer equipment | 20% |
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VUW Te Waharoa —
NZ Gazette 1998, No 149
NZLII —
NZ Gazette 1998, No 149
✨ LLM interpretation of page content
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Certification of Financial Statements for Dunedin Electricity Limited
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🏭 Trade, Customs & Industry26 June 1998
Financial Statements, Certification, Dunedin Electricity Limited, Electricity Regulations, Accounting Policies, Asset Valuation, Depreciation