✨ Financial Statements Notes
21 AUGUST NEW ZEALAND GAZETTE 2453
NOTES TO THE FINANCIAL STATEMENTS
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STATEMENT OF ACCOUNTING POLICIES
Reporting entity
Orion New Zealand Limited (“the Company”) is a Company registered under the Companies Act 1993. The Company is a reporting entity for the purposes of the Financial Reporting Act 1993.
Special purpose financial statements
These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1999 (“Regulations”), and amendments to those Regulations.
Allocations of the costs, revenues, assets and liabilities of the Company have been made in accordance with the mandatory avoidable cost allocation methodology as required by the Regulations.
This approach defines the line business as the Company’s core business, and makes an assessment of the costs, revenues, assets and liabilities that would be avoided by the line business if all non-core businesses were to cease operation. The costs, revenues, assets and liabilities that would be avoided are allocated to those non-core businesses. Costs, revenues, assets and liabilities that would not be avoided are allocated to the line business.
Although not required to do so, the Company has chosen to provide comparative information for all new disclosure requirements.
Measurement base
The accounting principles recognised as appropriate for the measurement and reporting of financial performance, cash flows and financial position on an historical cost basis are followed by the Company, with the exception that certain fixed assets have been revalued.
Specific accounting policies
The following specific accounting policies which materially affect the measurement of financial performance, cash flows and financial position are applied:
(a) Line revenue
Sales recognise actual amounts billed during the financial year, with an adjustment for assessed amounts due but not billed during the year.(b) Capital contributions
Capital contributions which are refundable to customers are treated as current liabilities until refunded. Non-refundable contributions are credited to income when received.(c) Research and development costs
Research and development costs are expensed in the period incurred. Development costs are deferred where future benefits are expected to exceed those costs, otherwise such costs are expensed in the period incurred. Deferred development costs are amortised over future periods in relation to expected future revenue. Unamortised costs are reviewed at each balance date to determine the amount (if any) that is no longer recoverable and any amounts, so identified, are expensed.(d) Distinction between capital and revenue expenditure
Capital expenditure is defined as all expenditure incurred in the creation of a new asset and any expenditure which results in a significant restoration or increased service potential for existing assets. Constructed assets are included in fixed assets
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 98
Gazette.govt.nz —
NZ Gazette 2000, No 98
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Statement of Cash Flows for Orion New Zealand Limited
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💰 Finance & RevenueCash Flows, Financial Statements, Operating Activities, Investing Activities, Financing Activities
💰 Notes to the Financial Statements of Orion New Zealand Limited
💰 Finance & RevenueAccounting Policies, Reporting Entity, Special Purpose Financial Statements, Measurement Base, Line Revenue, Capital Contributions, Research and Development Costs, Capital and Revenue Expenditure