✨ Vector Limited Financial Statements
3318
NEW ZEALAND GAZETTE
No. 124
VECTOR Limited
Electricity Lines Business
Statement Of Accounting Policies
For the year ended 31 March 2002
Reporting entity
The financial statements have been extracted from the audited financial statements of the VECTOR Limited parent company and represent the electricity line business activities of the company.
VECTOR Limited is a company registered under the Companies Act 1993.
Statutory base
The financial statements have been drawn up in accordance with the requirements of the Companies Act 1993, the Financial Reporting Act 1993 and Regulation 6 of the Electricity (Information Disclosure) Regulations 1999 and Regulation 15 of the Electricity (Information Disclosure) Amendment Regulations 2000.
Measurement base
The financial statements are prepared on the basis of historical cost modified by the revaluation of certain assets as identified in specific accounting policies below.
The avoidable cost allocation methodology (ACAM) used for allocating costs, assets and liabilities between "line" and "other" activities is in accordance with the Electricity Information Disclosure Handbook 30 June 2000.
Specific accounting policies
The following specific accounting policies that materially affect the measurement of financial performance, financial position and cash flow have been applied.
a) Comparatives
Comparatives were prepared in accordance with the Electricity (Information Disclosure) Regulations 1999 as amended by the Electricity (Information Disclosure) Amendment Regulations 2000 and the Electricity Information Disclosure Handbook 30 June 2000.
b) Income recognition
Income from the provision of line network services is recognised as services are delivered. Interest income is accounted for as earned.
c) Property, plant and equipment
The cost of purchased property, plant and equipment is the value of the consideration given to acquire the property, plant and equipment and the value of other directly attributable costs which have been incurred in bringing the property, plant and equipment to the location and condition necessary for the intended service.
The cost of self-constructed property, plant and equipment includes the cost of all materials used in construction, direct labour on the project, costs of obtaining Resource Management consents, financing costs that are attributable to the project and an appropriate proportion of the variable and fixed overheads. Costs cease to be capitalised as soon as the asset is ready for productive use and do not include any inefficiency costs.
Distribution systems and some land and buildings are revalued by independent experts on the basis of Optimised Deprival Value (ODV). The valuation was prepared in accordance with the Fourth Edition of the Ministry of Economic Development Handbook for Optimised Deprival Valuation of System Fixed Assets of Electricity Line Businesses (October 2000). Revaluations are carried out at least every three years and are conducted under the guidance of independent experts. Subsequent additions are recorded at cost.
The carrying values of property, plant and equipment not subject to revaluations are subject to annual impairment reviews.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 124
Gazette.govt.nz —
NZ Gazette 2002, No 124
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Vector Limited Statement of Accounting Policies
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