New Zealand Gazette – 1999 – No. 186

Page 4419

✨ Financial Statements Notes



3 DECEMBER NEW ZEALAND GAZETTE 4419

Natural Gas Corporation – Gas Transmission Activities
Notes to the Financial Statements
For the Year Ended 30 June 1999

  1. Statement of Accounting Policies

a) Accounting Entity

The financial statements are those of Natural Gas Corporation – Gas Transmission Activities (NGC). Gas Transmission Activities involves the ownership and the supply of line function services for the transportation of gas.

b) Special Purpose Financial Statements

The financial statements have been prepared in accordance with the Gas (Information Disclosure) Regulations 1997 and generally accepted accounting principles.

c) General Accounting Policies

The general accounting policies recognised as appropriate for the measurement and reporting of earnings and the financial position under the historical cost method, as modified by the revaluation of certain assets, have been followed in the preparation of these financial statements. This includes the going concern concept and the matching of revenue and expenses under the accrual concept.

d) Particular Accounting Policies

The following particular accounting policies which materially affect the measurement of financial performance and financial position have been adopted:

i) Revenue and Expenses

Revenue and expenses are stated exclusive of Goods and Services Tax (GST).

ii) Valuation of Fixed Assets

Pipelines, compressors and gate stations are recorded at the most recent valuation, adjusted by subsequent additions, disposals and depreciation. Valuations are carried out regularly and reviewed by independent experts, using the optimised deprival valuation methodology. All fixed assets other than pipelines, compressors and gate stations, are included at cost less accumulated depreciation.

Under the modified historical cost method, the revaluation, reflecting the difference between the net carrying value of the assets and the valuation (net of the deferred tax), is recorded in the asset revaluation reserve. In arriving at the net carrying value any accumulated depreciation is written back against the asset value.

The revaluation increase or decrease is transferred from the revaluation reserve to retained earnings on the disposal of an asset.



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🏭 Natural Gas Corporation - Gas Transmission Activities Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
Natural Gas, Financial Performance, Gas (Information Disclosure) Regulations 1997, Accounting Policies