✨ Financial Statements
2326
NEW ZEALAND GAZETTE
No. 90
HORIZON ENERGY DISTRIBUTION LIMITED – Lines Business
Financial Statements for the purposes of the
Electricity (Information Disclosure) Regulations 1999
Notes to the Financial Statements
for the year ended 31 March 2003
d) Operating activities include all transactions and
other events that are not investing or financing
activities.
viii) Financial Instruments
Financial instruments with off-balance sheet risk, have
been entered into for the primary purpose of reducing
exposure to fluctuations in foreign exchange rates and
interest rates. While financial instruments are subject to
risk that market rates may change subsequent to
acquisition, such changes would generally be offset by
opposite effects on the items hedged.
Financial instruments entered into with no underlying
exposure are accounted for on a mark to market basis.
ix) Research and Development
Costs incurred on all research and development projects
are written off as incurred, except that development costs
are capitalised to the extent that such costs are expected,
beyond any reasonable doubt, to be recovered.
x) Foreign Currency
Foreign currency transactions are recorded at exchange
rates in effect at the date of settlement, except where
forward contracts have been taken out to cover future
commitments. Where forward contracts have been taken
out, the transaction is translated at the rate contained in
the contract. Monetary assets and liabilities arising from
trading transactions are translated at closing rates. Gains
or losses due to currency fluctuations on these items are
included in the statement of financial performance.
xi) Comparatives
The statements and notes do not restate comparatives or
provide comparatives for new disclosure items per the
Electricity (Information Disclosure) Regulations 1999, the
Electricity (Information Disclosure) Amendment
Regulations 2000, 2001, or for “Other” business first
separated out in 2003.
C. Changes in Accounting Policies
During the year the Group and the Parent changed the
following accounting policy:
Valuation of Distribution System Assets
Distribution assets were not revalued at 31 March 2003.
Under the new policy, distribution assets are carried at the
latest valuation performed on 31 March 2000, adjusted for
subsequent additions, disposals and depreciation.
Previously, distribution assets were revalued on the basis
of depreciated replacement cost every three years,
The Board of Directors has adopted this change because a
revaluation cannot be justified for cost/benefit reasons,
and given the current uncertainty of the potential impact
for future regulation on asset values.
The change in accounting policy has not had a material
effect in the current period.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 90
Gazette.govt.nz —
NZ Gazette 2003, No 90
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Financial Statements for Horizon Energy Distribution Limited
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🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Operating Activities, Financial Instruments, Research and Development, Foreign Currency, Comparatives