New Zealand Gazette – 1999 – No. 107

Page 2547

✨ Financial Disclosure by Horowhenua Energy Limited



1 SEPTEMBER NEW ZEALAND GAZETTE

Horowhenua Energy Limited Line Business – Disclosure 1999

The level of maintenance required to preserve the service potential of the infrastructure asset is determined by a detailed asset management plan.

c) Depreciation

Depreciation is provided on either a diminishing value (DV), or straight line (SL) basis on all property, plant and equipment other than those accounted for in the infrastructure accounting method above, at rates calculated to allocate the assets’ cost or valuation less estimated residual value, over their estimated useful lives.

Main depreciation rates are:

  • Substation assets 4% straight line
  • Buildings 1% - 2.5% straight line
  • Plant and equipment 10% - 25% diminishing value
  • Computer equipment 25% straight line
  • Motor vehicles 20% - 25% diminishing value

d) Receivables

Receivables are stated at their estimated realisable value.

e) Income tax

The income tax expense charged to the Statement of Financial Performance includes both the current year’s provision and the income tax effects of timing differences.

Income tax expense is calculated using the liability method. Deferred tax is accounted for on the partial basis. A debit balance in the deferred tax account is only carried forward to the extent that there is virtual certainty of its recovery.

f) Leases

Operating lease payments, where the lessors retain substantially all the risks and benefits of ownership of the leased items, are included in the determination of the operating profit in equal instalments over the lease term.

g) Statement of cash flows

The following are the definitions of the terms used in the Statement of Cash Flows:

  1. Cash is considered to be cash on hand, short term deposits and current accounts in the bank, net of bank overdrafts.

  2. Investing activities are those activities relating to the acquisition, holding and disposal of fixed assets and of investments. Investments can include securities not falling within the definition of cash.

  3. Financing activities are those activities which result in changes in the size and composition of the capital structure of the Group. This includes both equity and debt not falling within the definition of cash. Dividends paid in relation to the capital structure are included in financing activities.

  4. Operating activities include all transactions and other events that are not investing or financing activities.

h) Changes in accounting policies

The method used this year to determine the allocation of revenue, costs, assets and liabilities to the Lines Business is prescribed under the Electricity (Information Disclosure) Regulations 1999.



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🏭 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