✨ Financial Statements Notes
NELSON ELECTRICITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year to 31 March 2002
2.7 Fixed Assets
Land assets were revalued as at 31 July 2001 in accord with values provided by Mr Tony Gowans, FNZIV of Telfer Young (Nelson ) Ltd
Distribution system assets were revalued as at 1 April 2001 to depreciated replacement cost as assessed by independent valuers PricewaterhouseCoopers and certified in their advice of 25 March 2002.
Revaluation surpluses are transferred directly to the asset revaluation reserve.
It is intended that network and land assets will be revalued five yearly. Subsequent additions are recorded at cost. All other assets are recorded at cost less depreciation.
2.8 Operating Leases
Leases where the lessor retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Payments under these leases are recognised as expenses in the periods in which they occur.
2.9 Lease Buy-out Amortisation
The cost of buying out the unexpired portion of the network lease held by Citipower Ltd has been capitalised in Nelson Electricity’s financial records. The cost will be amortised over the period which the lease would have run. This period finishes on 31 March 2002.
2.10 Network Revenue
The Company’s principal source of revenue arises form the supply of network services to electricity traders who trade across the network. Terms and conditions for supply of these services are provided for in “use of system” agreements signed with the electricity retailers.
2.11 Employee Entitlements
Provision is made in respect of the company’s liability for employees annual leave. Annual leave is calculated on an actual entitlement basis at current rates of remuneration.
2.12 Statement of Cash Flows
Cash means cash balances on hand, held in bank accounts, demand deposits and other highly liquid investments in which the company invests as part of its day to day cash management.
Operating activities include all cash received from all income sources of the company and records the cash payments made for the supply of goods and services.
Investing activities are those activities relating to the acquisition and disposal of non current assets
Financing activities comprise the change in equity and debt capital structure of the company.
2.13 Changes in Accounting Policies
In accord with the requirements of the Institute of Chartered Accountants of New Zealand’s Financial Reporting Standard FRS 3, the Company revalued its network assets as at 1 April 2001 and land as at 31 July 2001. The network assets were revalued on the basis of Depreciated Replacement Cost. Land was revalued to Net Current Value as determined by an independent valuer. Network assets had previously been valued on the basis of historic cost less accumulated depreciation. Land was previously valued at historic cost.
There have been no other changes in accounting policies during the year. All other policies have been applied on bases consistent with those used in other years.
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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
✨ LLM interpretation of page content
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Notes to the Financial Statements for Nelson Electricity Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Fixed Assets, Operating Leases, Lease Buy-out, Network Revenue, Employee Entitlements, Cash Flows, Accounting Policies
- Tony Gowans, Valued land assets