✨ Financial Statements Notes
30 NOVEMBER NEW ZEALAND GAZETTE 4023
Natural Gas Corporation – Gas Distribution Activities
Notes to the Financial Statements
For the year ended 30 June 2001
1. Statement of Accounting Policies
a) Accounting Entity
The financial statements are presented by Natural Gas Corporation of New Zealand Limited (NGCNZ). They represent the aggregated Gas Distribution Activities of NGCNZ and AGL NZ Energy Limited (AGLNZE). AGLNZE is a subsidiary of the Australian Gas Light Company (AGL). NGCNZ is an indirect subsidiary of AGL and the two entities are therefore in a prescribed relationship, as defined in the Gas (Information Disclosure) Regulations 1997.
As required by the Regulations, these financial statements represent the aggregated Gas Distribution Activities of NGCNZ and AGLNZE. They have been compiled by aggregating the balances of each entity on a line by line basis for the period from 1 July 2000 to 30 June 2001, being the period in which a prescribed relationship has existed.
b) General Accounting Policies
The general accounting policies recognised as appropriate for the measurement and reporting of earnings and the financial position under the historical cost method, as modified by the revaluation of certain assets, have been followed in the preparation of these financial statements. This includes the going concern concept and the matching of revenue and expenses under the accrual concept.
c) Particular Accounting Policies
The following particular accounting policies which materially affect the measurement of financial performance and financial position have been adopted:
i) Revenues and Expenses
Revenues and expenses are stated exclusive of Goods and Services Tax (GST).
ii) Valuation of Fixed Assets
Pipelines, compressors and gate stations are recorded at the most recent valuation, adjusted by subsequent additions, disposals and depreciation. Valuations are carried out regularly and reviewed by independent experts, using the optimised deprival valuation methodology. All fixed assets other than pipelines, compressors and gate stations, are included at cost less accumulated depreciation.
Under the modified historical cost method, the revaluation, reflecting the difference between the net carrying value of the assets and the valuation (net of the deferred tax), is recorded in the asset revaluation reserve. In arriving at the net carrying value any accumulated depreciation is written back against the asset value. The revaluation increase or decrease is transferred from the revaluation reserve to retained earnings on the disposal of an asset.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 165
Gazette.govt.nz —
NZ Gazette 2001, No 165
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Natural Gas Corporation Financial Position Statement
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