New Zealand Gazette – 2001 – No. 112

Page 2898

✨ Financial Statements Notes



2898

NEW ZEALAND GAZETTE

No. 112

Notes to the financial statements

1. Statement of accounting policies

Reporting entity

Horowhenua Energy Limited is registered under the Companies Act 1993.

The financial statements are those of the Line Business Activities only of Horowhenua Energy Limited and have been prepared in accordance the Electricity (Information Disclosure) Regulations 1999 and only for that purpose.

Measurement base

The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on a historical cost basis are followed, with the exception that certain property, plant and equipment have been revalued.

Specific accounting policies

The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied:

a) Property, plant and equipment

The Company has four classes of property, plant and equipment:

  1. Land and buildings
  2. Distribution Assets
  3. Plant and Equipment
  4. Vehicles

The Company uses Optimised Deprival Value (“ODV”) methodology in valuing distribution assets. This methodology recognises the economic value of distribution assets based on the earnings of segments of the network to the Company. The ODV of distribution assets is updated every three years to reflect network extensions and the earnings derived. The ODV was updated 31 March 2001.

Land and buildings, other than those included in distribution assets, are stated at market valuation (refer note 9).

All other property, plant and equipment are recorded at cost less accumulated depreciation.

b) Infrastructure assets

Distribution assets consist of the individual asset components which form the Company’s electricity network.

The company uses infrastructure accounting methods for its distribution assets other than zone substations. This method of accounting recognises that well planned maintenance of the network assets preserves the service potential of the infrastructure asset for the foreseeable future. Accordingly no depreciation is charged in respect of the infrastructure assets, except for zone substations.

The level of maintenance required to preserve the service potential of the infrastructure asset is determined by a detailed asset management plan.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2001, No 112


Gazette.govt.nz — PDF NZ Gazette 2001, No 112




✨ LLM interpretation of page content

💰 Statement of Accounting Policies (continued from previous page)

💰 Finance & Revenue
Accounting Policies, Financial Statements, Property, Plant, Equipment, Infrastructure Assets, ODV, Depreciation