✨ Financial Statement Accounting Policies
10 SEPTEMBER NEW ZEALAND GAZETTE 2757
THE POWER COMPANY LIMITED
LINE BUSINESS
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 1999
1.0 STATEMENT OF ACCOUNTING POLICIES
Reporting Entity
The Power Company Limited is wholly owned by a Consumer Trust and is registered under the Companies Act 1993.
The Line Business reports on the network assets of The Power Company Limited, along with the joint venture interests in PowerNet Limited.
Measurement Base
The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on an historical cost bases are followed.
Purpose of the Financial Statements
These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1999 ("the regulations").
These financial statements relate to the Company’s Line Business incorporating the conveyance of electricity, ownership of works for conveyance of electricity and provision of line function services in accordance with Section 6 of the Regulations.
Specific Accounting Policies
(a) Principles of Consolidation
The interest in PowerNet Limited has been accounted for on a line by line consolidation of revenue and expenses after the elimination of all significant inter-company transactions.
(b) Avoidable Cost Allocation Methodology
The Avoidable Cost Allocation Methodology has been used to separate "other" activities from The Power Company Limited and PowerNet Limited. Other Activities include the Monowai Power House, Meters, Rental Properties, External Contracting Activities, Streetlighting and Investment Income.
(c) Fixed Assets
At 31 March 1999 all assets including Network Assets are recorded at cost less accumulated depreciation.
(d) Distinction Between Capital and Revenue Expenditure
Capital expenditure is defined as all expenditure on the creation of a new asset and any expenditure which results in a significant improvement to the original function of an existing asset.
Revenue expenditure is defined as expenditure which maintains an asset in working condition, and expenditure incurred in maintaining the service performance and operation of the Company.
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VUW Te Waharoa —
NZ Gazette 1999, No 115
NZLII —
NZ Gazette 1999, No 115
✨ LLM interpretation of page content
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Financial Performance Statement for The Power Company Limited
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💰 Finance & RevenueFinancial Statement, Accounting Policies, Line Business, Power Company Limited