New Zealand Gazette – 1999 – No. 95

Page 2274

✨ Financial Statements and Accounting Policies



NEW ZEALAND GAZETTE

No. 95

Notes to Financial Statements

Statement of Accounting Policies

For the period ended 31 March 1999

Entity Statement

Electricity Distribution
The Company’s core business is the conveying of electricity from the national power grid throughout Central Hawke’s Bay by its electricity network. It includes the ownership and operation of the electricity network and its associated assets. It charges energy retailers for this service.

Contracting and Other Commercial Activities
Contracting, network maintenance and construction and electrical appliance retailing will continue to feature in our business activities and are required to function competitively and to produce acceptable rates of return. These Financial Statements do not include these activities and have been separated out in accordance with the Electricity (Information Disclosure) Regulations 1999.

(a) Energy Retailing
The Electricity Reform Act 1998 required CHB Power Holdings Limited to split itself into two companies, namely an electricity retailing business and a lines business. On 16 November 1998, the electricity retailing business, including meters and load control equipment was sold to Energy CHB Limited, a subsidiary of ECNZ (now Meridian Energy Limited).

(b) Corporate Division
The Corporate division has been absorbed into the Company’s core business of electricity distribution.

The Company will undertake these activities in a manner consistent with:

  • The safe and effective utilisation of our physical assets and human resources.
  • The prudent management of our business risks.

Statutory Base

The Company is a limited liability company registered under the provisions of the Companies Act 1993 and the Energy Companies Act 1992. The Company has 8,000,000 shares vested in the CHB Consumer’s Power Trust on 1 June 1993.

The Financial Statements are prepared in accordance with Regulations 6 (2) of the Electricity (Information Disclosure) Regulations 1999.

Accounting policies used in the preparation of these financial statements are set out below. The historical cost method, as modified by the revaluation of certain assets, has been followed.

The principles of going concern, accrual and periodic reporting have been used as the underlying basis of the reports, as defined by the Statement of Concepts issued by the Institute of Chartered Accountants of New Zealand.

Employee Entitlements

Provision is made in respect of the Company’s liability for annual leave, standby leave, long service leave, retiring gratuities and redundancies. All have been calculated on the actual entitlement at balance date at the applicable rate stated in individual contracts, except for retiring gratuities which have been calculated on the basis of entitlement likely to be paid which is based on historical data at balance date.



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✨ LLM interpretation of page content

🏭 Statement of Cash Flows for CHB Power Holdings Limited (continued from previous page)

🏭 Trade, Customs & Industry
Cash Flows, Operating Activities, Investing Activities, Financing Activities, Electricity

🏭 Notes to Financial Statements and Accounting Policies

🏭 Trade, Customs & Industry
Financial Statements, Accounting Policies, Electricity Distribution, Energy Retailing, Corporate Division, Statutory Base, Employee Entitlements