New Zealand Gazette – 2000 – No. 110

Page 2747

✨ Financial Statements Notes



25 AUGUST NEW ZEALAND GAZETTE 2747

Notes to the Financial Statements

For the year ended 31 March 2000

1. STATEMENT OF ACCOUNTING POLICIES

Reporting entity
The financial statements have been extracted from the audited financial statements of Vector Limited parent company and represent the electricity line business activities of the company.

VECTOR Limited is a company registered under the Companies Act 1993.

Statutory base
The financial statements have been drawn up in accordance with the requirements of the Companies Act 1993, the Financial Reporting Act 1993 and Regulation 6 of the Electricity (Information Disclosure) Regulations 1999 and Regulation 15 of the Electricity (Information Disclosure) Amendment Regulations 2000.

Measurement base
The financial statements are prepared on the basis of historical cost modified by the revaluation of certain assets as identified in specific accounting policies below.

The avoidable cost allocation methodology (ACAM) used for allocating costs and assets and liabilities between "line" and "other" activities is in accordance with the Electricity Information Disclosure Handbook 30 June 2000.

Specific accounting policies
The following specific accounting policies that materially affect the measurement of financial performance, financial position and cash flow have been applied.

a) Income Recognition
Income from the Line Network is recognised as services are delivered.

b) Fixed Assets
Fixed assets other than distribution systems and some land and buildings are recorded at cost less accumulated depreciation. Distribution systems are recorded at their Optimised Deprival Value (ODV) - the lower of optimised depreciated value and economic value. Revaluations are carried out at least every three years and are conducted under the guidance of independent experts. Subsequent additions are recorded at cost.

c) Depreciation
Depreciation is calculated so as to expense the cost of the assets, or the revalued amounts, to their residual values over their useful lives as follows:

  • Freehold buildings 50 years
  • Distribution systems 15 - 70 years
  • Motor vehicles 20% per annum diminishing value
  • Consumer billing and information system 3 - 40 years
  • Office equipment 3 - 40 years
  • Other plant and equipment 18% per annum diminishing value

d) Accounts Receivable
Accounts receivable are carried at estimated realisable value after providing against debts where collection is doubtful.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2000, No 110


Gazette.govt.nz — PDF NZ Gazette 2000, No 110




✨ LLM interpretation of page content

🏭 Vector Limited Financial Performance Statement (continued from previous page)

🏭 Trade, Customs & Industry
Electricity, Financial Performance, Cash Flows, Operating Activities, Investing Activities, Financing Activities, Vector Limited

🏭 Notes to the Financial Statements

🏭 Trade, Customs & Industry
Financial Statements, Accounting Policies, Reporting Entity, Statutory Base, Measurement Base, Income Recognition, Fixed Assets, Depreciation, Accounts Receivable