✨ Financial Statements Notes
28 MAY NEW ZEALAND GAZETTE 1203
2.3 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the 9 months ended 31 December 2000
1 Statement of accounting policies
Special purpose financial statements
These financial statements are made pursuant to UnitedNetworks’ obligations under the Gas (Information Disclosure) Regulations 1997. They are in addition to the company’s financial statements published pursuant to the company’s obligations under the Companies Act 1993 and the Financial Reporting Act 1993.
In these statements UnitedNetworks has adopted the avoidable cost allocation methodology stipulated in the Electricity Information Disclosure Handbook issued on 30th June 2000. The Electricity Lines business is treated as the core business activity and other activities are accounted for through the Gas Lines and Other business unit financial statements.
General accounting policies
The general accounting principles as recommended by the Institute of Chartered Accountants of New Zealand for the measurement and reporting of operating surplus on a historical cost basis have been followed by the company.
Particular accounting policies
The following particular accounting polices which materially affect the measurement of the financial performance and position have been applied:
Income tax
These financial statements adopt the liability method of accounting whereby the income tax expense shown in the statement of financial performance is the estimated total liability relating to the income for the period. Deferred taxation is accounted for in respect of items relating to the statement of financial performance, following the liability method, on the comprehensive basis. Where the revalued assets are intended to be held long term, the deferred taxation liability relating to the revaluation, arising from depreciation claimed for taxation purposes, is not expected to crystallise in the foreseeable future. Accordingly, the taxation liability, which would arise if the revalued assets were disposed of at valuation, has not been recognised. The taxation effect of the timing difference not recognised is disclosed in note 4.
Fixed assets
All fixed assets are recorded at cost or the most recent valuation.
Gas reticulation assets
The gas reticulation assets are revalued every three years by independent valuers. The most recent valuation was undertaken as at 31 March 1998 by the previous owner.
Financial instruments
The company has financial instruments with off-balance sheet risk for the primary purpose of reducing its exposure to fluctuations in interest rates and foreign exchange rates.
Financial instruments entered into as hedges of an underlying exposure are accounted for on the same basis as the underlying exposure. Financial instruments entered into with no underlying exposure are accounted for on a mark to market basis.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 53
Gazette.govt.nz —
NZ Gazette 2001, No 53
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Notes to Financial Statements for 9 months ended 31 December 2000
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, UnitedNetworks, Gas Information Disclosure Regulations, Special Purpose Financial Statements