New Zealand Gazette – 1998 – No. 155

Page 3698

✨ Financial Statements and Accounting Policies



3698 NEW ZEALAND GAZETTE No. 155

MAINPOWER NEW ZEALAND LTD

Notes to and Forming Part of the Financial Statements
For The Year Ended 31 March 1998

Statement of Accounting Policies Specific to all MainPower’s Business Activities.

Reporting Entity

The financial statements have been prepared in accordance with the Electricity (Information Disclosure) Regulations 1994.

The separate business activities disclosed by MainPower New Zealand Ltd comprise the Lines Business including the management of Kaiapoi Electricity Ltd’s distribution system, and other business activities including Energy Trading, Power System Contracting and other energy related business.

Measurement Base

The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on a modified historical cost basis are followed by MainPower.

Accounting Policies

The following particular accounting policies which materially affect the measurement of financial performance and the financial position have been applied:

1.1 Fixed Assets

MainPower has six classes of fixed assets:

Distribution System
Land and Buildings
Motor Vehicles
Plant and Equipment
Furniture and Equipment
Intangible Assets

The Energy Trader has no fixed assets.

1.2 Depreciation

Depreciation is provided 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. Depreciation on Distribution assets is calculated having regard to each asset’s Optimised Deprival Valuation while freehold buildings are depreciated on a straight line basis. All other assets are depreciated on a diminishing value basis.

Major depreciation rates are:

Freehold buildings             -    1%    to 2.5%
Motor Vehicles               -   20%    to 26%
Plant and equipment          -   10%    to 50%
Office furniture and equipment -    7.5%   to 33%
Distribution System          -    1.5%   to 5%

Gains and losses on disposal of fixed assets are taken into account in determining the operating result for the year.



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