✨ Financial Statements Notes
22 MAY NEW ZEALAND GAZETTE 1395
2.3 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the 12 months ended 31 December 2001
1 Statement of accounting policies
Special purpose financial statements
These financial statements are made pursuant to UnitedNetworks’ obligations under the Gas (Information Disclosure) Regulations 1997. They are in addition to the company’s financial statements published pursuant to the company’s obligations under the Companies Act 1993 and the Financial Reporting Act 1993.
In these statements UnitedNetworks has adopted the avoidable cost allocation methodology stipulated in the Electricity Information Disclosure Handbook issued on 30th June 2000. The Electricity Lines business is treated as the core business activity and other activities are accounted for through the Gas Lines and Other business unit financial statements.
General accounting policies
The general accounting policies as recommended by the Institute of Chartered Accountants of New Zealand for the measurement and reporting of operating surplus on a historical cost basis have been followed by the company.
Particular accounting policies
The following particular accounting polices which materially affect the measurement of the financial performance and position have been applied:
Income tax
These financial statements adopt the liability method of accounting whereby the income tax expense shown in the statement of financial performance is the estimated total liability relating to the income for the period. Deferred taxation is accounted for in respect of items relating to the statement of financial performance, following the liability method, on the comprehensive basis.
Fixed assets
All fixed assets are recorded at cost or the most recent valuation. The gas reticulation assets are currently carried at cost.
Financial instruments
The company has financial instruments with off-balance sheet risk for the primary purpose of reducing its exposure to fluctuations in interest rates and foreign exchange rates.
Financial instruments entered into as hedges of an underlying exposure are accounted for on the same basis as the underlying exposure. Accordingly hedge gains and losses are included in the Statement of Financial Performance when the gains or losses arising on the related physical exposures are recognised in the Statement of Financial Performance.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 51
Gazette.govt.nz —
NZ Gazette 2002, No 51
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Notes to Financial Statements for UnitedNetworks
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Special Purpose, General Accounting Policies, Particular Accounting Policies, Income Tax, Fixed Assets, Financial Instruments