✨ Accounting Policies
OTAGO POWER LIMITED LINE BUSINESS
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 2002
GENERAL ACCOUNTING POLICIES
Reporting Entity
Otago Power Limited is a company registered under the Companies Act 1993 and is also registered under the Co-operative Companies Act 1996.
Purpose of the Financial Statements
These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1999 ("the regulations").
These financial statements relate to the Company’s Line Business incorporating the conveyance of electricity, ownership of works for conveyance of electricity and provision of line function services in accordance with Section 6 of the Regulations.
Measurement Base
The measurement base adopted is that of historical cost except for the revaluation of certain items of property, plant and equipment as stated. Reliance is placed on the fact that Otago Power Limited is a going concern.
Specific Accounting Policies
(a) Avoidable Cost Allocation Methodology
The Avoidable Cost Allocation Methodology has been used to separate “Other” activities from Otago Power Limited. Other activities or non Line Business activity has been excluded from these accounts.
(b) Receivables
Receivables are stated at their estimated realisable value after writing off bad debts for the period and making an allowance for doubtful debts. All known losses are written off in the period in which it becomes apparent the debts are not collectable.
(c) Inventories
Inventories are valued at the lower of cost or net realisable value on a weighted average cost basis.
(d) Property, Plant and Equipment
Valuation
The assets of the Otago Electric Power Board (OEPB) were transferred to the Company under the Energy Companies Act 1992 in accordance with the Establishment Plan. The value of assets acquired from OEPB were determined as set out below, with subsequent additions at cost.
(i) Distribution system assets, except standby transformers, are valued at cost less accumulated depreciation. Standby transformers are recorded at a current market value established in 1991, as valued by B Wilkes an independent valuer, less depreciation. This is a departure from the historical cost measurement base.
(ii) Buildings, Plant and Equipment are recorded at cost less accumulated depreciation.
(iii) Land and Roading is recorded at cost.
(iv) Motor Vehicles are recorded at cost less accumulated depreciation.
(v) Capital Work in Progress is stated at cost and is not depreciated.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 101
Gazette.govt.nz —
NZ Gazette 2002, No 101
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Otago Power Limited Accounting Policies
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🏭 Trade, Customs & IndustryAccounting Policies, Reporting Entity, Measurement Base, Avoidable Cost Allocation, Receivables, Inventories, Property, Plant and Equipment, Valuation, Depreciation