✨ Financial Statements Accounting Policies
NORTHPOWER LIMITED
STATEMENT OF ACCOUNTING POLICIES
For The Year Ended 31 March 2002
Reporting Entity
Northpower Ltd is a company formed under the Energy Companies Act 1992 and registered under the Companies Act 1993. It is a reporting entity for the purposes of the Financial Reporting Act 1993.
The financial statements have been prepared for the sole purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1999.
Measurement Base
The general accounting policies recognised as appropriate for the measurement and reporting of results, cashflows and financial position under the historical cost method, as modified by the revaluation of land, buildings and the distribution system assets, have been followed in the preparation of these financial statements.
Particular Accounting Policies
The following particular accounting policies, which significantly affect the measurement of profit and of financial position, have been applied:
(i) Sales
Sales shown in the Statement of Financial Performance comprise the amounts received and receivable by the Line Company for goods and services supplied to customers in the ordinary course of business. Sales are stated exclusive of Goods and Services Tax collected from customers.
(ii) Investments
Investments are stated at cost.
(iii) Properties Intended For Sale
Properties intended for sale are classified as current assets if sale is expected within 1 year. Such properties are shown at carrying value unless this exceeds net realisable value.
(iv) Cost of Fixed Assets
All fixed assets are initially recorded at cost.
The cost of purchased fixed assets is the value of the consideration given to acquire the assets and the value of other directly attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended service.
The cost of assets constructed by the Company includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of production overhead. Costs cease to be capitalised as soon as the asset is ready for productive use.
Land and buildings have been revalued to net current value based on a valuation conducted by Coutts Milburn Ltd, Registered Valuers of Whangarei, as at 31 March 2001.
Distribution system assets have been revalued to Depreciated Replacement Cost (DRC) as at 31 March 2001, based on a valuation conducted by PriceWaterhouseCoopers, Registered Valuers, as at 31 March 2001.
Land and buildings, and distribution system assets, are revalued by independent registered valuers on a three-yearly basis.
Additions between revaluations are recorded at cost.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 111
Gazette.govt.nz —
NZ Gazette 2002, No 111
✨ LLM interpretation of page content
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Northpower Limited's Statement of Accounting Policies
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🏭 Trade, Customs & Industry5 August 2002
Accounting Policies, Financial Statements, Northpower Limited, Electricity Regulations
- Milburn, Registered Valuer for land and buildings