New Zealand Gazette – 1998 – No. 152

Page 3675

✨ Financial Accounting Policies



21 SEPTEMBER NEW ZEALAND GAZETTE 3675

g) Inventory

Inventory is valued at the lower of historical cost and net realisable value. The weighted average method has been used to determine historical cost. The quantity of gas in pipes has been estimated by Powerco Limited’s gas engineers, and valued at average purchase cost per unit.

h) Investments

Investments are valued at the lower of cost and net realisable value.

i) Revenue Recognition

Revenue from the sale of energy and value added services is recognised when invoices are issued plus an accrual is made for unread meters at balance date.

j) Financial Instruments

The company has various financial instruments with off-balance sheet risk for the primary purpose of reducing its exposure to fluctuations in electricity unit prices and interest rates. While these financial instruments are subject to risk that the market rates may change subsequent to acquisition, such changes would generally be offset by opposite effects on the items being hedged.

Financial instruments purchased with the intention of being held for the long term or until maturity are recorded at cost which is adjusted for the amortisation of premiums and accretion of discounts to maturity.

k) Goodwill

Goodwill represents the excess of purchase consideration over the fair value of net assets acquired at the time of acquisition of a business or shares in a subsidiary or an associate company.

Goodwill is amortised on a systematic basis over the period benefits are expected to arise, which will generally be twenty years or less.

Changes in Accounting Policies

There have been no changes to accounting policies. All policies have been applied on a basis consistent with prior years.



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✨ LLM interpretation of page content

🏭 Powerco Limited Gas Information Disclosure (continued from previous page)

🏭 Trade, Customs & Industry
20 August 1998
Gas, Information Disclosure, Regulations, Powerco Limited, Financial Statements, Certification