✨ Financial Statements Notes
NEW ZEALAND GAZETTE
No. 194
Natural Gas Corporation – Gas Transmission Activities
Notes to the Financial Statements
For the Year Ended 30 June 1998
- Statement of Accounting Policies
a) Accounting Entity
The financial statements are those of Natural Gas Corporation – Gas Transmission Activities (NGC). Gas Transmission Activities involves the ownership and the supply of line function services for the transportation of gas.
b) Special Purpose Financial Statements
The financial statements have been prepared in accordance with the Gas (Information Disclosure) Regulations 1997 and generally accepted accounting principles.
c) General Accounting Policies
The general accounting policies recognised as appropriate for the measurement and reporting of earnings and the financial position under the historical cost method, as modified by the revaluation of certain assets, have been followed in the preparation of these financial statements. This includes the going concern concept and the matching of revenue and expenses under the accrual concept.
d) Particular Accounting Policies
The following particular accounting policies which materially affect the measurement of financial performance and financial position have been adopted:
i) Revenue and Expenses
Revenue and expenses are stated exclusive of Goods and Services Tax (GST).
ii) Valuation of Fixed Assets
Pipelines, compressors and gate stations are recorded at the most recent valuation, adjusted by subsequent additions, disposals and depreciation. Valuations are carried out regularly and reviewed by independent experts, using the optimised deprival valuation methodology. All fixed assets other than pipelines, compressors and gate stations, are included at cost less accumulated depreciation.
Under the modified historical cost method, the revaluation, reflecting the difference between the net carrying value of the assets and the valuation (net of the deferred tax), is recorded in the asset revaluation reserve. In arriving at the net carrying value any accumulated depreciation is written back against the asset value.
The revaluation increase or decrease is transferred from the revaluation reserve to retained earnings on the disposal of an asset.
Construction in progress is recorded at cost. For projects having a cost in excess of $500,000 and a construction period of not less than three months, finance costs relating to that project are capitalised. The finance costs capitalised are based on the actual cost directly attributable to the construction of the asset. Where this is not clearly identifiable, NGC’s cost of debt is used. Assets constructed by NGC are commissioned and transferred from construction in progress to fixed assets as each facility or operating unit within a facility becomes operational and available for use.
iii) Current Assets
Accounts receivables are valued at their estimated realisable value. Inventories are valued at the lower of cost and net realisable value. Cost is determined on a weighted average basis. All other current assets are valued at their estimated realisable value.
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VUW Te Waharoa —
NZ Gazette 1998, No 194
NZLII —
NZ Gazette 1998, No 194
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Statement of Financial Position for Natural Gas Corporation - Gas Transmission Activities
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🏭 Trade, Customs & IndustryFinancial Position, Gas Transmission, Natural Gas Corporation, Assets, Liabilities, Equity