✨ Financial Statements Notes
NEW ZEALAND GAZETTE
No. 105
notes to and forming part of the financial statements
CentralPower Limited
For the year ended 31 March 1999
1. Basis of Reporting
The financial statements have been prepared in accordance with the requirements of the Electricity (Information Disclosure) Regulations 1999.
The measurement base adopted is that of historical cost adjusted by the revaluation of certain assets.
(a) Revenue Recognition
Line charge sales represent customer usage during the reported period. An allowance (which is not expected to vary by greater than 10% from actual billings), has been made for unbilled sales (unbilled line charges).
Contract revenue is recognised using the percentage of completion method where revenue can be reliably estimated. Where revenue is unreliable, contract revenue is recognised at completion of the contract.
(b) Fixed Assets
Land and buildings are initially recorded at cost. Land and buildings are subsequently revalued to net current value or, where the land and building are for resale, to the lower of cost and net realisable value as determined by an independent valuer.
Network assets are revalued to Optimised Deprival Value (ODV) as determined by an independent valuer.
All other fixed assets are recorded at cost.
(c) Depreciation
Depreciation is provided on a straight-line basis 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.
Major depreciation rates are:
| Network | 35 to 70 years |
| Buildings | 25 to 50 years |
| Plant and equipment | 3 to 15 years |
| Motor vehicles | 3 to 10 years |
(d) Income Tax
The income tax expense charged to the statement of financial performance includes both the current year liability and the income tax effects of timing differences after allowing for non-assessable income and non-deductible expenses.
Deferred taxation is calculated using the liability method on a partial basis. Debit balances in the deferred tax account arising from net accumulated timing differences and future income tax benefits arising from income tax losses carried forward are only recognised if there is virtual certainty of realisation.
(e) Contributions for Subdivisions/Uneconomic Lines
Contributions received from customers and grants towards the cost of reticulating new subdivisions and constructing uneconomic lines are included in the determination of operating surplus before taxation.
(f) Accounts Receivable
Accounts receivable have been valued at estimated realisable value after making provision for doubtful debts.
(g) Comparatives
Where any information disclosures are made for the first time as a result of the change in the Regulations, no comparatives are required to be disclosed where there was no corresponding requirement in the 1994 regulations.
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VUW Te Waharoa —
NZ Gazette 1999, No 105
NZLII —
NZ Gazette 1999, No 105
✨ LLM interpretation of page content
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Financial Statements of CentralPower Limited
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🏭 Trade, Customs & IndustryFinancial Performance, Notes to Financial Statements, Accounting Policies, Revenue Recognition, Fixed Assets, Depreciation, Income Tax, Contributions, Accounts Receivable, Comparatives, CentralPower Limited