✨ Financial Statements Notes
2.5 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 March 1999
- Statement of Accounting Policies
Special Purpose Financial Statements
The financial statements are made pursuant to UnitedNetworks’ obligations under the Electricity (Information Disclosure) Regulations 1999. They are in addition to the company’s financial statements published pursuant to the company’s obligations under the Companies Act 1993 and the Financial Reporting Act 1993.
The Line business unit is treated as the core business activity and corporate activities are accounted for through the Line and Other business unit financial statements.
In these statements UnitedNetworks has adopted the avoidable cost allocation methodology stipulated in the Electricity Information Disclosure Handbook.
General Accounting Policies
The general accounting principles as recommended by the Institute of Chartered Accountants of New Zealand for the measurement and reporting of operating surplus on a historical cost basis have been followed by the company with the exception of Distribution Network System Assets, which have been revalued to their Optimised Deprival Value (ODV) in accordance with the treatment outlined in the Electricity Information Disclosure Handbook. This is more fully explained within the particular accounting policy for Fixed Assets.
Particular Accounting Policies
The following particular accounting policies which materially affect the measurement of the financial performance and position have been applied:
-
Consolidation
These financial statements include the results of Bay of Plenty Electricity Limited (renamed Horizon Energy Distribution Limited on 1 April 1999), a 52% owned subsidiary, as an aggregation of the line business components only. For the purpose of these disclosures minority interest has been classified as “other” in accordance with the Electricity Information Disclosure Handbook. -
Income Tax
The company adopts the liability method of accounting whereby the income tax expense shown in the statement of financial performance is the estimated total liability relating to the income for the period. Deferred taxation is accounted for in respect of items relating to the Statement of Financial Performance, following the liability method, on the comprehensive basis. Where the revalued assets are intended to be held long term, the deferred taxation liability relating to the revaluation, arising from depreciation claimed for taxation purposes, is not expected to crystallise in the foreseeable future. Accordingly, the taxation liability which would arise if the revalued assets were disposed of at valuation has not been recognised. The taxation effect of the timing difference not recognised is disclosed in note 4. -
Fixed Assets Other Than Distribution Network System Assets
All fixed assets are initially recorded at cost.
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VUW Te Waharoa —
NZ Gazette 1999, No 125
NZLII —
NZ Gazette 1999, No 125
✨ LLM interpretation of page content
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Notes to Financial Statements for the year ended 31 March 1999
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Accounting Policies, Special Purpose, General Accounting, Consolidation, Income Tax, Fixed Assets