✨ Financial Statements
21 AUGUST
NEW ZEALAND GAZETTE
2979
NELSON ELECTRICITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year to 31 March 2002
Statement of Accounting Policies
1. Entity Statement
Nelson Electricity Limited is a public company registered under the Companies Act 1993 and a reporting entity for the purposes of the Financial reporting Act 1993. Nelson Electricity owns the electricity distribution network which serves the central Nelson City area. The distribution network assets were leased to Citipower Ltd between December 1991 and March 1999. As a result of restructuring required in accord with the Energy Industry Reform Act the lease was terminated on 1 April 1999.
2. Accounting Policies
2.1 Authority
These financial statements have been prepared for the sole purpose of complying with the requirements of Regulation 6 of the Electricity (Information Disclosure) Regulations 1999. The general accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on an historic cost basis have been followed in the preparation of these financial statements.
2.2 Measurement Base
Reliance has been placed on the fact that Nelson Electricity Limited remains a going concern and that its funds will continue to be available to maintain operations. The measurement base adopted is that of historical cost with the exception of certain items for which specific accounting policies are disclosed.
2.3 Matching of Expenses and Revenue
Accrual accounting has been employed in matching expenses and related revenue.
2.4 Depreciation
depreciation has been provided on all major assets, excluding land, at the following rates.
Buildings 2% SL
Distribution System 1.43% to 6.67% SL
Plant and Equipment 14.4% - 80% SL
2.5 Taxation
The Company follows the liability method of accounting for deferred taxation and applies this on the comprehensive basis. A debit balance in the deferred taxation account arising from timing differences is recognised only where there is virtual certainty of realisation.
2.6 Financial Instruments
The company is party to financial instruments as part of its every day operations. These financial instruments include cash and bank deposits, accounts receivable and payable, and loans which have been recognised in the statement of financial position.
Revenues and expenses in relation to all financial instruments are recognised in the Statement of financial performance.
Except for loans, which are recorded at cost and those items covered by a separate accounting policy all financial instruments are shown at their estimated fair value.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 112
Gazette.govt.nz —
NZ Gazette 2002, No 112
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Notes to the Financial Statements for Nelson Electricity Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Entity Statement, Measurement Base, Depreciation, Taxation, Financial Instruments