30 AUGUST NEW ZEALAND GAZETTE 2891

Alpine Energy Limited (Lines)

Financial Statements Prepared in Accordance with the Electricity (Information Disclosure) Regulations 1999 and the Electricity (Information Disclosure) Amendment Regulations 2000

Notes to and Forming Part of the Financial Statements

for the Year Ending 31 March 2000

1. Statement of Accounting Policies

These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1999.

The financial information presented is for the line business and “other” business activities. “Other” activities represent the Electricians’ business, as described within section 6(3) of the Electricity (Information Disclosure) Regulations 1999. There are also additional activities of the Company that are not required to be reported under the Regulations.

The financial statements have been prepared on the basis of historical cost, with the exception of certain items for which specific accounting policies are identified.

a) Customer Contributions

Contributions from customers, in relation to the construction of new lines for the network, and contributions from district councils, towards the costs of replacing overhead lines with underground cables, are accounted for as income in the year in which they are received.

b) Capital and Operating Expenditure

Capital expenditure relates to expenditure incurred in the creation of a new asset and expenditure incurred on existing reticulation system assets to the extent the system is enhanced.

Operating expenditure relates to expenditure which restores an asset closer to its original condition and includes expenditure incurred in maintaining and operating the fixed assets of the Company.

c) Depreciation

Depreciation is charged as follows:

• Network Reticulation System straight line over useful lives from 10 to 80 years
• Buildings 1 to 2.5% of cost
• Motor Vehicles 20 to 31.2% on diminishing value
• Plant and Office Equipment 8 to 60% on diminishing value

Depreciation for taxation purposes recognises that:

• Additions to the network reticulation system exclude any allocation of indirect costs.
• Only 80% of the book value of the Globo distribution system at 1 April 1987 is depreciated.

d) Taxation

The taxation charge is the estimated liability payable in respect of the accounting profit for the year, adjusted for non assessable income and non deductible costs and including any adjustments in respect of prior years.

e) Accounts Receivable

Accounts receivable are stated at estimated realisable value after making provision for doubtful debts. Bad debts are written off during the period in which they are identified.

f) Goodwill

Goodwill representing the excess arising on the issue of shares for the carrying value of net assets transferred from South Canterbury Electric Power Board and Timaru Electricity has been amortised on a straight line basis over five years commencing 1 April 1994 and ending 31 March 1999.

g) Fixed Assets

All fixed assets are initially recorded at cost. Network reticulation system assets are subsequently revalued to net current value as determined by an independent valuer using the optimised deprival valuation method. Other Fixed assets are stated at cost less an allowance for depreciation.