New Zealand Gazette – 2001 – No. 99

Page 2580

✨ Financial Statements Notes



BULLER ELECTRICITY LIMITED – LINE BUSINESS

Notes to and forming part of the Financial Statements

for the Year Ended 31 March 2001

1 STATEMENT OF ACCOUNTING POLICIES

Buller Electricity Limited is a public company registered under the Companies Act 1993. These financial statements have been prepared for the purpose of complying with the requirements of the Electricity [Information Disclosure] Amendment Regulations 2000.

The general accounting policies recognised as appropriate for the measurement and reporting of performance, cash flows and financial position under the historical cost method, as modified by the revaluation of certain assets, have been followed in the preparation of these statements.

Specific Accounting Policies

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

a) Revenue
Fixed and variable line charges are recognised as actual amounts invoiced during the period together with an accrual for the estimated value of unbilled variable line charges at balance date. Contributions received from customers towards the cost of reticulating subdivisions and constructing line extensions are recognised as revenue in the year received.

b) Receivables
Receivables are stated at their estimated realisable value after providing for doubtful debts. All known bad debts have been written off during the year.

c) Investments
Investments are recorded at the lower of cost or net realisable value.

d) Fixed Assets
The System Fixed Assets were revalued on an optimised depreciated replacement cost basis by independent valuers on 31 March 2001 and subsequently will be revalued at least every 3 years. Additions to the System Fixed Assets since revaluation are stated at cost.

Assets constructed by the company are capitalised at direct cost.

Land and buildings were revalued by Coast Valuations Limited an independent registered valuer as at 31 March 2001 in accordance with the New Zealand Institute of Valuers Asset Valuation Standards at net current value.

All other fixed assets are recorded at cost less accumulated depreciation.

e) Depreciation
Depreciation is provided on a straight line basis so as to write off the cost of the fixed assets to their expected residual value over their estimated useful lives as follows:

  • Buildings: 40 – 50 years
  • Distribution System: 3 – 60 years
  • Other: 3 – 10 years

Depreciation has been charged on a monthly basis on assets acquired and which became operational during the month.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2001, No 99


Gazette.govt.nz — PDF NZ Gazette 2001, No 99




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Financial Statements, Accounting Policies, Revenue, Receivables, Investments, Fixed Assets, Depreciation, Buller Electricity Limited