✨ Financial Statements
17 DECEMBER NEW ZEALAND GAZETTE 4641
NELSON ELECTRICITY LIMITED
Statement of Accounting Policies
1. Entity Statement
Nelson Electricity Limited is a public company registered under the Companies Act 1993 and a reporting entity for the purposes of the Financial Reporting Act 1993. Nelson Electricity owns the electricity distribution network which serves the central Nelson City area. The distribution network assets have been leased to Citipower since December 1991.
2. Accounting Policies
2.1 Authority
These financial statements have been prepared for the sole purpose of complying with the requirements of Regulation 6 (2) of the Electricity (Information Disclosure) Regulations 1999. The general accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on an historic basis have been followed in the preparation of these financial statements.
2.2 Measurement Base
Reliance has been placed on the fact that Nelson Electricity Limited remains a going concern and that its funds will continue to be available to maintain operations. The measurement base adopted is that of historical cost.
2.3 Matching of Expenses and Revenue
Accrual accounting has been employed in matching expenses and related revenue.
2.4 Separation of Line and other Business
The separation of revenue between line and other business was undertaken on a basis consistent with disclosure in previous years.
2.5 Depreciation
Depreciation has been provided on all major assets, excluding land, at the following rates.
Buildings 2% SL
Distribution System 4% SL
2.6 Financial Instruments
The company is party to financial instruments as part of its every day operations. These financial instruments include cash and bank deposits, accounts receivable and payable, and loans which have been recognised in the financial statements.
Revenues and expenses in relation to all financial instruments are recognised in the Statement of Financial Performance.
The following methods and assumptions are used to value each class of financial instrument.
Debtors are recorded at expected realisable value.
Investments are recorded at the lower of cost or market value.
All other financial instruments are recognised at their fair value.
2.7 Fixed Assets
Land is stated at cost, all other assets are stated at cost less accumulated depreciation.
2.8 Taxation
The Company follows the liability method of accounting for deferred taxation and applies this on the comprehensive basis. A debit balance in the deferred taxation account arising from timing differences is recognised only where there is virtual certainty of realisation.
2.9 Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on a basis consistent with the previous year. Revenue and expenditure streams and asset values relating to metering have been removed from these accounts in accord with the requirements of the disclosure regulations.
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VUW Te Waharoa —
NZ Gazette 1999, No 194
NZLII —
NZ Gazette 1999, No 194
✨ LLM interpretation of page content
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Nelson Electricity Limited Financial Performance
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🏭 Trade, Customs & IndustryFinancial Statements, Cash Flows, Income, Expenditure, Nelson Electricity Limited