New Zealand Gazette – 2002 – No. 106

Page 2869

✨ Financial Statements



Network Waitaki Limited (Lines)

Notes to and Forming Part of the Financial Statements

for the Year Ending 31 March 2002

1. Statement of Accounting Policies

a) Reporting Entity

(i) The Financial Statements presented here are for the Line Business of Network Waitaki Limited.

(ii) The Financial Statements have been prepared in accordance with the Companies Act 1993 and the Financial Reporting Act 1993.

(iii) These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1999, as amended by the Electricity (Information Disclosure) Amendment Regulations 2000 and the Electricity (Information Disclosure) Amendment Regulations 2001.

(iv) The Line Business operates a line business activity, as defined by Regulation 2 of the Electricity (Information Disclosure) Regulations, in the Waitaki area.

b) Measurement Base

(i) The Financial Statements have been prepared on the basis of Historical Cost with the exception of certain items for which specific accounting policies are identified.

(ii) Accrual accounting is used to match expenses and revenues.

(iii) Reliance is placed on the fact that the Company is a going concern.

c) Accounting Policies

(i) Accounts Receivable are shown at expected realisable value after providing for doubtful debts.

(ii) Inventories are valued at the lower of cost or net realisable value. Serial numbered stock is recorded at the appropriate individual value, while other stock is recorded at weighted average cost.

(iii) Fixed Assets

  • The network system assets are revalued at least every three years by independent valuers to Optimised Deprival Value (ODV) – the lower of Optimised Depreciated Replacement Cost and Economic Value. The last revaluation was undertaken as at 31 March 2001.

  • All other assets are valued at cost less accumulated depreciation

    Asset Type Depreciation Method/Rate
    Radio Equipment 15 yrs SL
    Distribution System 40-70 yrs SL
    Substation Transformers etc 50 yrs SL Buildings 40-100 yrs SL
    Office Equipment 12%-50% DV
    Substation Load Control 20 Yrs SL
    Plant & Machinery 10%-50% DV
    Distribution Transformers 40 yrs SL

(iv) These accounts are exclusive of GST except for Accounts Receivable and Accounts Payable.

(v) Income tax expense has been calculated using the liability method. Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is recognised only if there is virtual certainty of realisation.

(vi) Investments are stated at cost.

(vii) Contributions received toward Capital Works are recorded in the Statement of Financial Performance and shown as income earned in the year in which they are received.

d) Changes in Accounting Policy:

There have been no changes in accounting policies.

e) Methodology of Separation of Business:

The basis of allocation adopted is the avoidable cost methodology.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2002, No 106


Gazette.govt.nz — PDF NZ Gazette 2002, No 106




✨ LLM interpretation of page content

🏭 Financial Statements for Network Waitaki Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Accounting Policies, Reporting Entity, Measurement Base, Fixed Assets, Depreciation, GST, Income Tax, Investments, Capital Works