✨ Financial Statements
NEW ZEALAND GAZETTE
No. 93
TOP ENERGY LIMITED
NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS
STATEMENT OF ACCOUNTING POLICIES
FOR THE 12 MONTHS ENDED 31 MARCH 2000
6 Renewal Accounting - Distribution Network
Assets comprising the distribution network system are reported using the renewal accounting method and are stated at valuation. These infrastructural assets include all items directly involved in the delivery of electricity, but exclude substation land, buildings, transformers, circuit breakers and load management control equipment. All expenditure that extends or enhances the infrastructure is capitalised. Expenditure incurred in maintaining the infrastructure’s capacity is treated as an expense in the period in which it is incurred. The actual amount expended is compared with a predetermined benchmark level and any shortfall or excess is adjusted through the Statement of Financial Performance. Similarly the value of the infrastructure asset is increased or decreased by the same amount.
7 Depreciation
Land, infrastructure distribution system and work-in-progress assets are not depreciated. As noted below, other fixed assets are depreciated on a straight line (Cost) or diminishing value (DV) basis that has regard to their historical cost, estimated useful life and expected residual value:
| Non-infrastructure Distribution Assets | Depreciation Rate | Method |
|---|---|---|
| Buildings | 2.50% | SL |
| Office Equipment, Plant and Furniture | 2.00% | SL |
| Information systems assets | 10.00% | SL |
| Chainsaws | 10.00-20.00% | SL |
| Computer Software | 33.33% | SL |
| Motor Vehicles | 20.00% | DV |
8 Statement of Cash Flows
The following is the definition of terms used in the Statement of Cash Flows:
“Cash” means coins and notes, demand deposits and other highly liquid investments in which the Company has invested as part of its day-to-day cash management. Cash includes liabilities which are the negative form of the above, such as the bank overdraft. Cash does not include accounts receivable or payable, or any borrowing subject to a term facility.
“Investing activities” are those activities relating to the acquisition, holding and disposal of fixed assets and of investments. Investments can include securities not falling within the definition of cash.
“Financing activities” are those activities which result in changes in the size and capital structure of the Company. This includes both equity and debt not falling within the definition of cash. Dividends paid in relation to the capital structure are included in financing activities.
“Operating activities” include all transactions and other events that are not investing or financing activities and includes interest and dividends received in relation to investments.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 93
Gazette.govt.nz —
NZ Gazette 2000, No 93
✨ LLM interpretation of page content
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Notes to the Special Purpose Financial Statements of Top Energy Limited
(continued from previous page)
🏗️ Infrastructure & Public Works1 August 2000
Financial Statements, Accounting Policies, Depreciation, Cash Flows, Top Energy Limited