New Zealand Gazette – 1999 – No. 107

Page 2546

✨ Financial Disclosure Notes



2546 NEW ZEALAND GAZETTE No. 107

Horowhenua Energy Limited Line Business – Disclosure 1999

Notes to the financial statements

1. Statement of accounting policies

Reporting entity

Horowhenua Energy Limited is registered under the Companies Act 1993.

The financial statements are those of the Line Business Activities only of Horowhenua Energy Limited and have been prepared in accordance the Electricity (Information Disclosure) Regulations 1999 and only for that purpose.

Measurement base

The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on a historical cost basis are followed, with the exception that certain fixed assets have been revalued.

Specific accounting policies

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

a) Property, plant and equipment

The Group has five classes of property, plant and equipment:

  1. Land and buildings
  2. Distribution Assets
  3. Plant and Equipment
  4. Vehicles
  5. Capital work in progress

The Company uses Optimised Deprival Value (“ODV”) methodology in valuing distribution assets. This methodology recognises the economic value of distribution assets based on the earnings of segments of the network to the Company. The ODV of distribution assets is updated every two years to reflect network extensions and the earnings derived.

Land and buildings, other than those included as part of the distribution assets, are stated at market valuation (refer note 9).

Property, plant and equipment, excluding land and buildings and distribution assets, are recorded at cost less accumulated depreciation.

b) Infrastructure assets

Distribution assets consist of the individual asset components which form the Company’s electricity network.

The Company uses infrastructure accounting methods for its distribution assets other than zone substations. This method of accounting recognises that well planned maintenance of the network assets preserves the service potential of the infrastructure asset for the foreseeable future. Accordingly no depreciation is charged in respect of the infrastructure assets.



Next Page →

PDF embedding disabled (Crown copyright)

View this page online at:


VUW Te Waharoa — PDF NZ Gazette 1999, No 107


NZLII — PDF NZ Gazette 1999, No 107




✨ LLM interpretation of page content

🏭 Financial and Performance Disclosure by Horowhenua Energy Limited (continued from previous page)

🏭 Trade, Customs & Industry
28 May 1999
Electricity, Financial Disclosure, Performance Measures, Horowhenua Energy Limited