✨ Financial Statements Notes
(c) Unlisted Companies
Eastland Energy Limited wholly owns the following companies; Eastland Network Limited, Remote Metering Limited, Eastland Power Limited. As these companies had not traded at 31 March 1998, there has been no consolidation.
(d) Revenue Recognition
Revenues for all services are recognised when earned. Billings for services are made on a monthly, bi-monthly or quarterly basis. Unbilled revenue from the billing cycle date to the end of the financial reporting period is recognised as revenue during the period in which the service is provided. Profit and interest on hire purchase sales are recognised in full at the time of sale.
(e) Fixed Assets
Fixed assets are valued at cost or valuation less accumulated depreciation.
Freehold land and buildings are subsequently 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.
(f) 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 of the original function of a total asset. Revenue expenditure is defined as expenditure which restores an asset to its original condition, or renews distribution network lines without increasing capacity, and all expenditure incurred in maintaining and operating the assets.
(g) Depreciation
Depreciation of tangible assets is provided on a straight line basis so as to allocate the cost or valuation of the fixed assets over their estimated economic lives after due allowance has been made for their expected residual value. Leased assets are depreciated over the shorter of the unexpired period of the lease and the estimated useful life of the asset. Additions are depreciated from the date of acquisition or commencement of use. Estimated economic lives of assets are as follows -
Buildings : 40 - 100 years
Distribution System : 10 - 50 years
Distribution Assets (pre 1987) : 20 - 30 years
Furniture and Equipment : 5 - 10 years
Motor Vehicles : 5 - 10 years
Plant and Equipment : 5 - 10 years.
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VUW Te Waharoa —
NZ Gazette 1998, No 150
NZLII —
NZ Gazette 1998, No 150
✨ LLM interpretation of page content
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Eastland Energy Limited Financial Statements
(continued from previous page)
🏭 Trade, Customs & Industry7 August 1998
Financial Statements, Electricity, Disclosure, Regulations, Eastland Energy