New Zealand Gazette – 2003 – No. 111

Page 2939

✨ Financial Statements Notes



22 AUGUST
NEW ZEALAND GAZETTE
2939

THE LINES COMPANY LIMITED
Lines Business Activity
Notes to the Financial Statements
For the Year Ended 31st March 2003

NOTE 1:
STATEMENT OF ACCOUNTING POLICIES

The following particular accounting policies that materially affect the measurement of profit and the financial position have been applied:

REPORTING ENTITY
The Lines Company Limited is owned by: Waitomo Energy Services Customer Trust (75%) and King Country Electric Power Trust (25%) and is incorporated under the Companies Act 1993. The accounts are prepared in accordance with the Companies Act 1993 and the Financial Reporting Act 1993, and the Electricity (Information Disclosure) Regulations 1999 as amended by the Electricity (Information Disclosure) Amendment Regulations 2000.

The principal activity of the entity is the provision of electricity distribution services.

MEASUREMENT BASE
The general accounting policies recognised as appropriate for the measurement and reporting of earnings and financial position on an historical cost basis are followed except where revaluation of assets are incorporated, and other items disclosed in the accounting policies listed below.

Accrual accounting is used to match expenses with revenues. Reliance is placed on the fact that the Company is a going concern.

(a) Receivables
Receivables are stated at their estimated realisable value.

(b) Fixed Assets
The Company has four classes of fixed assets:

  • Freehold Land
  • Freehold Buildings
  • Motor Vehicles, Plant and Equipment
  • Distribution System

Land and Buildings were independently valued by Doyle Valuations on 31st March 2003 based on estimated market value and are revalued every three years.

The distribution system has been independently valued based upon optimised deprival value (ODV) by an electrical engineer and PriceWaterhouseCoopers, as at 31 March 2003.

Increases in valuations have been transferred to the Revaluation Reserve in Shareholders Equity.

Motor Vehicles, Plant and Equipment and all other fixed assets have been valued at cost less accumulated depreciation.

(c) Staff Leave and Gratuity Payments
Provision is made in respect of the Company’s liability for annual leave and gratuity payments. At the balance date retiring gratuities have been accrued in respect of all employees:

  1. who have more than 10 years service with the Company and who are aged 45 years or over or
  2. whose gratuity entitlement was recognised in the transfer of employment from their previous employer.


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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2003, No 111


Gazette.govt.nz — PDF NZ Gazette 2003, No 111




✨ LLM interpretation of page content

💰 Certification of Financial Statements and Performance Measures by The Lines Company Limited (continued from previous page)

💰 Finance & Revenue
Financial Statements, Performance Measures, Certification, Electricity, The Lines Company Limited