New Zealand Gazette – 2000 – No. 113

Page 2827

✨ Financial Disclosures



29 AUGUST NEW ZEALAND GAZETTE 2827

  1. Taxation

The Taxation charge against the result for the year is the estimated liability in respect of that result after allowance for permanent differences and timing differences not expected to reverse in the foreseeable future. The Company follows the liability method of accounting for deferred taxation. Deferred taxation benefits are only recognised when there is virtual certainty of recovery in future periods.

  1. G.S.T.

These accounts are prepared exclusive of GST except for Accounts Receivable and Accounts Payable which are inclusive of GST.

  1. Financial Instruments

Otago Power Limited has various financial instruments, in the form of an electricity hedge portfolio, which were originally entered into for the primary purpose of reducing its exposure to fluctuations in electricity spot market prices. These hedge portfolios were retained when the company sold its energy retail business. Accordingly the hedge portfolio has been valued and accounted for on a mark to market basis. Realised and unrealised gains and losses on disposal of hedge contracts are recognised in the Statement of Financial Performance.

  1. Statement of Cash Flows

The Statement of Cash Flows is prepared exclusive of GST, which is consistent with the method used in the Statement of Financial Performance.

Definitions of the terms used in the statement of cash flows:

“cash” includes coins and notes, demand deposits and other highly liquid investments readily convertible into cash and includes at call borrowings such as bank overdrafts, used by the company and the group as part of their day-to-day cash management.

“Investing activities” are those activities relating to the acquisition and disposal of current and non-current investments and any other non-current assets.

“Financing activities” are those activities relating to changes in the equity and debt capital structure of the company and group and those activities relating to the cost of servicing the company’s and the group’s equity capital.

“Operating activities” include all transactions and other events that are not investing or financing activities.

  1. Asset Allocation

Under the Electricity (Information Disclosure) Amendment Regulations 1999, Otago Power Limited is defined as a line business. The methodology for allocating costs, revenues, assets and liabilities between the businesses is on the same basis as outlined in the Electricity Disclosure Guidelines as issued by the Ministry of Economic Development.

CHANGES IN ACCOUNTING POLICIES

The basis for allocating Costs, Revenues, Liabilities, Assets and Capital have changed in accordance with the mandatory requirements in the Information Disclosure guidelines.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2000, No 113


Gazette.govt.nz — PDF NZ Gazette 2000, No 113




✨ LLM interpretation of page content

🏭 Otago Power Limited Information Disclosure (continued from previous page)

🏭 Trade, Customs & Industry
Electricity, Information Disclosure, Otago Power Limited, Regulations, Financial Statements, Accounting Policies