New Zealand Gazette – 1999 – No. 186

Page 4430

✨ Financial Statements Notes



4430 NEW ZEALAND GAZETTE No. 186

Natural Gas Corporation – Gas Wholesaling 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 Wholesaling Activities (NGC). Gas Wholesaling comprise those activities relating to the sale of gas to persons for the purpose of resupply by the other person (other than those wholesaling activities involving the supply of gas to refuellers).

    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 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) **Current Assets**

    Accounts receivable are valued at their estimated realisable value.
    Inventories are valued at the lower of cost and net realisable value. Cost is determined on a weighted average basis.
    All other current assets are valued at their estimated realisable value.

iii) **Gas Entitlements**

    Under the terms of the gas supply contracts, NGC is required to pay for a minimum quantity of gas in each contract year whether or not delivery has been made. Prepayments for undelivered gas entitle NGC to delivery of gas in subsequent years without further payment. The prepayments are capitalised as a long-term asset and will be amortised to earnings as the prepaid gas is utilised.


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✨ LLM interpretation of page content

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

🏭 Trade, Customs & Industry
23 November 1999
Natural Gas, Financial Statements, Performance Measures, Gas (Information Disclosure) Regulations 1997, Audited Reports