✨ Financial Statements
21 AUGUST NEW ZEALAND GAZETTE 2485
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 Gas (Information Disclosure) Regulations 1997 ("Regulations"). These financial statements should be read in conjunction with the Company's annual report for the year ended 31 March 2000.
The avoidable cost methodology has been employed by the Company to determine the allocation of the assets, liabilities, revenues and costs.
The avoidable cost methodology defines the Company's distribution business as its core activity. An assessment has then been made as to what assets, liabilities, revenues and costs could be avoided by the distribution business.
Those costs that can be avoided are allocated to the other business activities of the Company and those costs that could not be avoided are allocated to the distribution business.
A full description of the avoidable cost methodology employed by the Company is publicly available as required by Regulation 21 of the Gas (Information Disclosure) Regulations 1997.
Measurement base
The measurement system adopted is that of historical cost except for the revaluation of certain fixed assets.
Specific accounting policies
The following specific accounting policies which materially affect the measurement of financial performance, cash flows and financial position are applied:
(a) Accounts receivable
Accounts receivable are valued at their expected realisable value. Any individual debt that is considered to be irrecoverable has been written-off during the financial year. Hire Purchase debtors exclude unearned interest calculated using the "rule of 78" method.
(b) Fixed assets
All fixed assets are revalued at least once every three years by independent valuers in accordance with SSAP 28. Any subsequent fixed asset additions are recorded at cost until the next revaluation.
(c) Depreciation
Depreciation is charged against all fixed assets, with the exception of freehold land on a straight line basis at rates which amortise the cost or revalued amount of each asset over their estimated economic lives.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 99
Gazette.govt.nz —
NZ Gazette 2000, No 99
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Statement of Accounting Policies
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🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Avoidable Cost Methodology, Gas Information Disclosure Regulations