✨ Financial Statements Notes
20 AUGUST
NEW ZEALAND GAZETTE
2817
NELSON ELECTRICITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the year to 31 March 2003
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 8 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 historic cost with the exception of certain items for which specific accounting policies are disclosed.
2.3 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% - 60% DV
2.4 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.
2.5 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.
2.6 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 (DRC) 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.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 107
Gazette.govt.nz —
NZ Gazette 2003, No 107
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Nelson Electricity Limited Financial Performance
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