New Zealand Gazette – 1999 – No. 112

Page 2668

✨ Financial Statements Notes



2668 NEW ZEALAND GAZETTE No. 112

THE LINES COMPANY LIMITED
(formerly Waitomo Energy Services Limited)
Line Business Activity
Notes to the Financial Statements
For the Year Ended 31st March 1999

NOTE 1:

NATURE OF COMPANY’S BUSINESS

The Company’s core business is the distribution, generation and retail of electricity and associated services.

STATUTORY BASE

The Lines Company Limited is incorporated under the Companies Act 1993 in accordance with the Energy Companies Act 1992. The accounts are prepared in accordance with the Companies Act 1993, the Financial Reporting Act 1993, and the Electricity (Information Disclosure) Regulations 1999.

STATEMENT OF ACCOUNTING POLICIES

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

The general accounting policies recognised as appropriate for the measurement and reporting of earnings and financial position on an historical cost basis are followed except where revaluation of assets are incorporated, and other items disclosed in the accounting policies listed below.

Accrual accounting is used to match expenses with revenues. Reliance is placed on the fact that the Company is a going concern.

(a)

Receivables

Receivables are stated at their estimated realisable value.

(b)

Fixed Assets

The Company has five classes of fixed assets:

  • Freehold Land
  • Freehold Buildings
  • Motor Vehicles, Plant and Equipment
  • Distribution System

Land and Buildings were independently valued by Hughes Valuations on 31st March 1997 based on estimated market value.

The distribution system has been independently valued based upon optimised depreciated value by an electrical engineer and Coopers & Lybrand, with the exception of

  • 11kV and low voltage distribution lines which have been valued at 70% of optimised deprival value, (odv).
  • Meters and Load Control Relays are included at cost.

Increases in valuations have been transferred to the Revaluation Reserve in Shareholders Equity.

Motor Vehicles, Plant and Equipment and all other assets have been valued at cost less accumulated depreciation.

(c)

Staff Leave and Gratuity Payments

Provision is made in respect of the Company’s liability for annual leave and gratuity payments. At the balance date retiring gratuities have been accrued in respect of all employees with more than 10 years service with the Company and aged 45 years or over. Gratuity payment is paid on the retirement of an employee who has at the time of retirement been currently continuously employed by the Company for a period of at least 10 years.



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🏭 Notes to the Financial Statements for The Lines Company Limited (continued from previous page)

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Financial Statements, Accounting Policies, Receivables, Fixed Assets, Valuation, Staff Leave