New Zealand Gazette – 2002 – No. 108

Page 2912

✨ Financial Statements



ELECTRICITY ASHBURTON LIMITED - LINES BUSINESS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2002

1 STATEMENT OF ACCOUNTING POLICIES

Statutory Base

Electricity Ashburton Limited is a Co-operative company registered under the Co-operative Companies Act 1996.

These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1999 from the financial statements of Electricity Ashburton Limited as at 31 March 2002.

Measurement Base

The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on a modified historic cost basis have been followed.

Accounting Policies

a) Revenue

Line revenue is recognised as actual amounts invoiced during the period. Capital contributions are recognised as revenue in the year of receipt.

b) Transmission Charges

Transmission charges are recognised as a direct cost to the line business activity.

c) Depreciation

Depreciation has been provided on all tangible fixed assets other than freehold land on the following basis and at the following rates which amortise the cost of the asset over their economic lives.

Fixed Assets:

  • Distribution Network 1.4% to 6.7% straight line
  • Buildings
    • concrete 1% straight line
    • brick 2% straight line
    • wooden 2.5% straight line
  • Motor Vehicles 14.4% to 31.2% diminishing value
  • Plant & Equipment 7.5% to 60.0% diminishing value

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

d) Income Taxation

The income taxation expense charged against the operating surplus for the year is the estimated liability in respect of that operating surplus and is calculated after allowance for permanent differences. Deferred Taxation is calculated on the comprehensive basis using the liability method (see Note 4). Future tax benefits attributable to tax losses or timing differences are only realised when there is virtual certainty of realisation.

e) Valuation of Assets

Land is stated at cost, all other fixed assets (except distribution assets) are stated at cost less accumulated depreciation.

All distribution system assets were revalued on an Optimised Deprival Value (ODV) basis by PriceWaterhouseCoopers as at 31 March 2001. All additions to the distribution network are recorded at cost. Distribution system assets will be revalued at least once every three years.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2002, No 108


Gazette.govt.nz — PDF NZ Gazette 2002, No 108




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🏭 Electricity Ashburton Limited - Lines Business Notes to the Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Accounting Policies, Revenue, Depreciation, Income Taxation, Valuation of Assets, Ashburton