New Zealand Gazette – 1999 – No. 126

Page 3020

✨ Electricity Accounting Policies



3020 NEW ZEALAND GAZETTE No. 126

ELECTRICITY ASHBURTON LIMITED - LINE BUSINESS

STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 1999

Statutory Base

Electricity Ashburton Limited is a Co-operative company registered under the Co-operative Companies Act 1996.

These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1999 from the consolidated financial statements of parent company Electricity Ashburton Limited and the wholly owned subsidiary Ashburton Refrigeration (1997) Limited as at 31 March 1999.

Measurement Base

The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on a modified historic cost basis have been followed.

Accounting Policies

a) Revenue

Line revenue is recognised as actual amounts invoiced during the period.
Capital contributions are recognised as revenue in the year of receipt.

b) Transmission Charges

Transmission charges are recognised as a direct cost to the line business activity.

c) Depreciation

Depreciation has been provided on all tangible fixed assets other than freehold land on the following basis and at the following rates which amortise the cost of the asset over their economic lives.

Fixed Assets:

  • Distribution Network: 1.4% to 6.7% straight line
  • Buildings:
    • concrete: 1% straight line
    • brick: 2% straight line
    • wooden: 2.5% straight line
  • Motor Vehicles: 18% to 31.2% diminishing value
  • Plant & Equipment: 10% to 60.0% diminishing value

Depreciation has been charged on a monthly basis on assets acquired and which became operational during the month.

d) Income Taxation

The income taxation expense charged against the operating surplus for the year is the estimated liability in respect of that operating surplus and is calculated after allowance for permanent differences. Deferred Taxation is calculated on the comprehensive basis using the liability method (see Note 1). Future tax benefits attributable to tax losses or timing differences are only realised when there is virtual certainty of realisation.



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✨ LLM interpretation of page content

🏭 Accounting Policies for Electricity Ashburton Limited (continued from previous page)

🏭 Trade, Customs & Industry
Electricity, Accounting Policies, Co-operative Companies Act 1996, Electricity (Information Disclosure) Regulations 1999