New Zealand Gazette – 1999 – No. 17

Page 385

✨ Financial Statement of Nelson Electricity Limited



8 FEBRUARY NEW ZEALAND GAZETTE 385

NELSON ELECTRICITY LIMITED
STATEMENT OF ACCOUNTING POLICIES

REPORTING ENTITY

The Nelson City Council corporatised its electrical distribution assets on 1 September 1993 in the name of Nelson Electricity Limited. The Nelson City Council sold of its 100% shareholding in Nelson Electricity Limited on 19 June 1996.

As at 1 December 1991 the Council leased the distribution assets to Citipower Limited (a fully owned subsidiary of Capital Power Limited) for a period of ten years. At the time of the formation of Nelson Electricity Limited the lease was transferred to the new company.

ACCOUNTING POLICIES

(1) Authority

These financial statements have been prepared in accordance with regulation 6 of the Electricity (Information Disclosure) Regulations 1994.

(2) Measurement Base

Reliance has been placed on the fact that Nelson Electricity Limited remains a going concern that its funds will continue to be available to maintain operations. The measurement base adopted is historical cost.

(3) Matching of Expenses and Revenue

Accrual accounting has been employed in matching expenses and related revenue.

(4) Separation of Line and Other Business

The separation of revenue between line and other business was provided by Citipower Limited for the current year based on NEL’s share of Citipower’s profitability pursuant to the participation agreement.

(5) Depreciation

Depreciation has been provided on all major assets, excluding land, on the following bases and at the following rates calculated.

Buildings                 2% SL
Distribution System       4% SL

(6) Financial Instruments

The company is party to financial instrument arrangements as part of its everyday operations. These financial instruments include cash and bank, accounts receivable and payable, investments and loans which have all been recognised in the financial statements.


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✨ LLM interpretation of page content

🏭 Financial Position Statement for Nelson Electricity Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Accounting Policies, Nelson Electricity Limited, Nelson City Council, Citipower Limited