✨ Financial Statements
(B) Fair Values
Cash and Liquid Deposits, Short and Long Term Loans, Accounts Payable and Receivable.
The carrying value of these items is equivalent to their fair value.
15. RELATED PARTY TRANSACTIONS
(a) The Line business enters into transactions with the “Other” Business. The relationship is managed on an arms length basis, with significant contracts generally awarded by the Line business on a competitive tendering basis.
(b) & (c)
The services provided by the “Other” Business generally include normal electrical construction, maintenance and fault response services related to the Line business electrical network.
(d) Services provided were in the following categories and at total prices as indicated in $000:
| 2002 | 2001 | |
|---|---|---|
| $000 | $000 | |
| Construction of subtransmission assets | 15 | 32 |
| Construction of zone substations | - | - |
| Construction of distribution lines and cables | 843 | 688 |
| Construction of medium voltage switch gear | - | - |
| Construction of distribution transformers | 355 | 210 |
| Construction of distribution substations | 142 | 67 |
| Construction of low voltage reticulation | 211 | 172 |
| Construction of other system fixed assets | 9 | 26 |
| Maintenance of assets | 1,492 | 1,531 |
(e) Services were provided throughout the financial year.
(f) There were no outstanding trade balances owing at year-end for services performed by the Other business for the Line business, as payment is effected by way of accounting entry at the end of each month. Loan funding was provided by the Other business to the Line Business, as disclosed in Note 8. As the Line and Other Businesses operate as a single legal entity no formal loan documentation is prepared in respect of loans between them. The loan has been treated in the Line Business financial statements as being on-call.
(g) No debts arising from related party transactions have been written off or forgiven during the year.
(h) No transactions were undertaken at a nil or nominal value, other than minor items as would occur in a normal arms length relationship.
Next Page →
Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 104
Gazette.govt.nz —
NZ Gazette 2002, No 104
✨ LLM interpretation of page content
🏭
Counties Power Limited Statement of Financial Notes
(continued from previous page)
🏭 Trade, Customs & IndustryElectricity, Financial Statements, Revenue, Operating Expenditure, Line Business, Accounting, Related Party Transactions