✨ Financial Statements Notes
NEW ZEALAND GAZETTE
No. 69
Notes to the financial statements
1. Statement of accounting policies
Reporting entity
Horowhenua Energy Limited is registered under the Companies Act 1993.
The financial statements are those of the Line Business Activities only of Horowhenua Energy Limited and have been prepared in accordance with the Electricity (Information Disclosure) Regulations 1999 and only for that purpose.
Measurement base
The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on a historical cost basis are followed, with the exception that certain property, plant and equipment have been revalued.
Specific accounting policies
The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied:
a) Property, plant and equipment
The Company has five classes of property, plant and equipment:
- Land and buildings
- Distribution Assets
- Plant and Equipment
- Vehicles
- Capital work in progress
The Company uses Optimised Deprival Value (“ODV”) methodology in valuing distribution assets. This methodology recognises the economic value of distribution assets based on the earnings of segments of the network to the Company. The ODV of distribution assets is updated every three years to reflect network extensions and the earnings derived. The ODV was updated at 1 April 1998.
Land and buildings, other than those included as part of the distribution assets, are stated at market valuation (refer note 9).
Property, plant and equipment, excluding land and buildings and distribution assets, are recorded at cost less accumulated depreciation.
b) Infrastructure assets
Distribution assets consist of the individual asset components which form the Company’s electricity network.
The Company uses infrastructure accounting methods for its distribution assets other than zone substations. This method of accounting recognises that well planned maintenance of the network assets preserves the service potential of the infrastructure asset for the foreseeable future. Accordingly no depreciation is charged on the infrastructure assets, except for zone substations.
The level of maintenance required to preserve the service potential of the infrastructure asset is determined by a detailed asset management plan.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 69
Gazette.govt.nz —
NZ Gazette 2000, No 69
✨ LLM interpretation of page content
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Statement of cash flows
(continued from previous page)
💰 Finance & Revenue26 May 2000
Financial Statement, Cash Flows, Operating Activities, Investing Activities, Financing Activities, Net Cash Flows
💰 Notes to the financial statements
💰 Finance & RevenueFinancial Statements, Accounting Policies, Reporting Entity, Measurement Base, Property Plant Equipment, Infrastructure Assets
💰 Statement of accounting policies
💰 Finance & RevenueAccounting Policies, Historical Cost Basis, Property Plant Equipment, Infrastructure Assets, Depreciation
💰 Specific accounting policies
💰 Finance & RevenueAccounting Policies, Property Plant Equipment, Optimised Deprival Value, Infrastructure Assets, Asset Management Plan