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New Zealand Gazette – 2000 – No. 91

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✨ Financial Statements Notes

2218 NEW ZEALAND GAZETTE No. 91

Network Waitaki Limited (Lines)

Notes to and Forming Part of the Financial Statements

for the Year Ending 31 March 2000

Statement of Accounting Policies

a) Reporting Entity

(i)   The Financial Statements presented here are for the Line Business of Network Waitaki Limited.

(ii)  The Financial Statements have been prepared in accordance with the Companies Act 1993 and the Financial Reporting Act 1993.

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

(iv)  The Line Business operates a line business activity, as defined by Regulation 2 of the Electricity (Information Disclosure) Regulations 1999, in the Waitaki area.

b) Measurement Base

(i)   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.

(ii)  Accrual accounting is used to match expenses and revenues.

(iii) Reliance is placed on the fact that the Company is a going concern.

c) Accounting Policies

(i)   Accounts Receivable are shown at expected realisable value after providing for doubtful debts.

(ii)  Inventories are valued at the lower of cost or net realisable value. Serial numbered stock is recorded at the appropriate individual value, while other stock is recorded at weighted average cost.

(iii) **Fixed assets**

      • The network system assets are revalued at least every three years by independent valuers to Optimised Deprival Value (ODV) – the lower of Optimised Depreciated Replacement Cost and Economic Value. The last revaluation was undertaken at 31 March 2000.

      • All other assets are valued at cost less accumulated depreciation:

          Radio Equipment                   15 yrs SL
          Distribution System               40-70 yrs SL
          Substation Transformers etc       50 yrs SL
          Substation Load Control Equipment 20 Yrs SL
          Distribution Transformers         40 yrs SL
          Buildings                       40-100 yrs SL
          Office Equipment & Furniture      12%-50% DV
          Plant & Machinery                 10%-50% DV
          Motor Vehicles                  15%-26% DV

(iv)  These accounts are exclusive of GST except for Accounts Receivable and Accounts Payable.

(v)   Income tax expense has been calculated using the liability method. Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is recognised only if there is virtual certainty of realisation.

(vi)  Investments are stated at cost.

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