✨ Financial Statements Notes
2402 NEW ZEALAND GAZETTE No. 96
Notes to and forming part of the financial statements
CentralPower Limited
For the year ended 31 March 2000
1. Statement of Accounting Policies
The financial statements have been prepared in accordance with the requirements of the Electricity (Information Disclosure) Regulations 1999.
The measurement base adopted is that of historical cost adjusted by the revaluation of certain assets.
(a) Fixed Assets
Land and buildings are initially recorded at cost. Land and buildings are subsequently revalued to net current value or, where the land and building are held for resale, to the lower of cost and net realisable value as determined by an independent valuer.
Network assets are revalued to Optimised Deprival Value (ODV) as determined by an independent valuer.
All other fixed assets are recorded at cost.
(b) Depreciation
Depreciation is provided on a straight-line basis on all tangible fixed assets other than freehold land and capital work under construction, at rates calculated to allocate the assets' cost or valuation, less estimated residual value, over their estimated useful lives.
Major depreciation rates are:
- Network: 35 to 70 years
- Buildings: 25 to 50 years
- Plant and equipment: 3 to 15 years
- Motor vehicles: 3 to 10 years
(c) Income Tax
The income tax expense charged to the statement of financial performance includes both the current year liability and the income tax effects of timing differences after allowing for non-assessable income and non-deductible expenses.
Deferred taxation is calculated using the comprehensive basis under the liability method. This method involves recognising the tax effect of all timing differences between accounting and taxable income as a deferred tax asset or liability in the statement of financial position. Debit balances in the deferred tax account arising from net accumulated timing differences and future income tax benefits arising from income tax losses carried forward are only recognised if there is virtual certainty of realisation.
(d) Contributions for Subdivisions/Uneconomic Lines
Contributions received from customers and grants towards the cost of reticulating new subdivisions and constructing uneconomic lines are included in the determination of operating surplus before taxation.
(e) Accounts Receivable
Accounts receivable have been valued at estimated realisable value.
(f) Comparatives
Where any information disclosures are made for the first time as a result of the change in the Regulations, no comparatives are required to be disclosed where there was no corresponding requirement in the 1994 regulations.
(g) Financial Instruments
Financial instruments recognised in the statement of financial position include deposits with banks, trade receivables, other receivables and debt. These instruments are entered into in the normal course of business.
The Company does not undertake speculative trading transactions. Accordingly, financial instruments are "marked to market" for disclosure purposes but are not adjusted for in the financial statements.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 96
Gazette.govt.nz —
NZ Gazette 2000, No 96
✨ LLM interpretation of page content
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CentralPower Limited Statement of Cash Flows
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🏭 Trade, Customs & Industry23 August 2000
Cash Flows, Operating Activities, Investing Activities, Financing Activities, CentralPower Limited