✨ Financial Statements
20 AUGUST
NEW ZEALAND GAZETTE
2839
THE POWER COMPANY LIMITED LINE BUSINESS
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 2003
STATEMENT OF ACCOUNTING POLICIES
Reporting Entity
The Power Company Limited is wholly owned by a Consumer Trust and is registered under the Companies Act 1993.
The Line Business reports on the network assets of The Power Company Limited, along with the joint venture interests in PowerNet Limited.
Purpose of the Financial Statements
These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1999 (“the regulations”) as amended by the Electricity (Information Disclosure) Amendment Regulations 2000.
These financial statements relate to the Company’s Line Business incorporating the conveyance of electricity, ownership of works for conveyance of electricity and provision of line function services in accordance with Section 6 of the Regulations.
Measurement Base
The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on an historical cost bases with the exception of certain items for which specific accounting policies are identified.
Specific Accounting Policies
(a) Principles of Consolidation
The interest in PowerNet Limited has been accounted for on a line by line consolidation of revenue and expenses after the elimination of all significant inter-company transactions.
(b) Avoidable Cost Allocation Methodology
The Avoidable Cost Allocation Methodology has been used to separate “Other” activities from The Power Company Limited and PowerNet Limited. Other activities or non Line Business activity has been excluded from these accounts.
(c) Property, Plant and Equipment
The network system assets were revalued as at 31 March 2001 to depreciated replacement cost (DRC) as assessed by independent valuers KPMG and Kerslake & Partners. During the year to 31 March 2002 the Commerce Commission undertook a recalibration audit of the valuation. As a result, the value of these assets has reduced by $24,060,000. Subsequent additions are recorded at cost.
All other assets are recorded at cost less accumulated depreciation.
(d) Distinction Between Capital and Revenue Expenditure
Capital expenditure is defined as all expenditure on the creation of a new asset and any expenditure which results in a significant improvement to the original function of an existing asset.
Revenue expenditure is defined as expenditure which maintains an asset in working condition, and expenditure incurred in maintaining the service performance and operation of the Company.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 108
Gazette.govt.nz —
NZ Gazette 2003, No 108
✨ LLM interpretation of page content
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Financial Performance Statement of The Power Company Limited
(continued from previous page)
🏭 Trade, Customs & Industry6 August 2003
Financial Statements, Revenue, Expenses, Taxation, The Power Company Limited