✨ Accounting Policies
3080 NEW ZEALAND GAZETTE No. 122
SPECIFIC ACCOUNTING POLICIES
In accordance with clause 6 of the Regulations, the methodology adopted to allocate costs, revenues, assets and liabilities among the businesses is in accordance with the Guidelines.
The particular accounting policies adopted in the preparation of these financial statements are:
(a) Revenue
Revenue shown in the Statement of Financial Performance for:
- The Line Business relates to the provision of electricity distribution.
(b) Expenditure
Expenditure shown in the Statement of Financial Performance is derived as follows:
Line Business
-
Transmission charges, employee remuneration, administration and operating expenses are directly attributable to the Line Business.
-
Maintenance provided up to 30 June 1998, by the Company’s Contracting Group and external contractors was at market rates.
-
Maintenance and operation costs from 1 July 1998 onward, is provided in accordance with a 10 year Asset Management Services Contract with DELTA Utility Services Ltd.
-
Other costs are allocated in accordance with the avoidable cost allocation methodology.
(c) Dividends
Dividends have been calculated in accordance with the Company’s dividend policy.
(d) Allocation of Assets and Liabilities
Assets and liabilities are those which are directly related to the Lines Business.
(e) Current Assets
Accounts receivable are those directly related to the Lines Business and are valued at expected realisable value less provision for doubtful debts.
(f) Fixed Assets
Dunedin network assets held at 1 January 1997 were revalued to the 1 January 1997 Optimised Deprival Valuation of those assets. This valuation was carried out in accordance with the statutory requirements of the Electricity (Information Disclosure) Regulations 1994, prepared and certified by Coopers and Lybrand.
Dunedin network assets were revalued to the 1 January 2000 Optimised Deprival Valuation of those assets. This valuation was carried out in accordance with the statutory requirements of the Electricity (Information Disclosure) Regulations 1999, prepared and certified by Catherall Taylor Associates. Additions to the Dunedin network since the latest revaluation are carried at cost less depreciation.
On 1 April 1999, the Lines Business purchased the network related assets of Central Electric Ltd. Central network assets are carried at cost less depreciation.
Furniture and fittings, plant and equipment, and motor vehicles are valued at market value as at 31 December 1992 and have been adjusted by accumulated depreciation, subsequent additions at cost and disposals at book value.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 122
Gazette.govt.nz —
NZ Gazette 2000, No 122
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Disclosure of Information Relating to Transactions Between Persons in a Prescribed Business Relationship and Related Parties
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