New Zealand Gazette – 1999 – No. 130

Page 3137

✨ Financial Accounting Policies



21 SEPTEMBER NEW ZEALAND GAZETTE 3137

Revenue from the sale of energy and value added services is recognised when invoices are issued plus an accrual is made for sales at balance date.

j) Financial Instruments

The company has various financial instruments with off-balance sheet risk for the primary purpose of reducing its exposure to fluctuations in interest rates. While these financial instruments are subject to risk that the market rates may change subsequent to acquisition.

Financial instruments purchased with the intention of being held for the long term or until maturity are recorded at cost which is adjusted for the amortisation of premiums and accretion of discounts to maturity.

k) Goodwill

Goodwill represents the excess of purchase consideration over the fair value of net assets acquired at the time of acquisition of a business or shares in a subsidiary or an associate company.

Goodwill is amortised on a systematic basis over the period benefits are expected to arise, which will generally be twenty years or less.

l) Identifiable Intangible Asset

The identifiable intangible asset recognises the purchase price of the network system assets acquired above the certified ODV valuation.

The asset includes the goodwill previously recognised on the acquisition of the Egmont Electricity network transferred as at 1 April 1998. This reclassification has increased the reported net profit before tax of the company in the current year by $318,000, which arises on the extension of the asset life from the previous goodwill classification.

The identifiable intangible asset is amortised over the estimated average life of the network system assets of 45 years, on a straight line basis.

Changes in Accounting Policies

There have been no changes to accounting policies. All policies have been applied on a basis consistent with prior years.



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✨ LLM interpretation of page content

🏭 Certification of Financial Statements and Performance Measures for Powerco Limited (continued from previous page)

🏭 Trade, Customs & Industry
Gas, Information Disclosure, Financial Statements, Performance Measures, Powerco Limited, Accounting Policies, Fixed Assets, Depreciation, Receivables, Income Tax, Inventory, Investments, Revenue Recognition