✨ Electricity Information Disclosure
ELECTRICITY INVERCARGILL LIMITED LINE BUSINESS
STATEMENT OF ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 2003
GENERAL ACCOUNTING POLICIES
Reporting Entity
Electricity Invercargill Limited is a company registered under the Companies Act 1993. The Company is a wholly-owned subsidiary of Invercargill City Holdings Limited.
The Line Business reports on the network assets of Electricity Invercargill 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 measurement base adopted is that of historical cost except for the revaluation of certain items of property, plant and equipment as stated. Reliance is placed on the fact that Electricity Invercargill Limited is a going concern.
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 Electricity Invercargill Limited and PowerNet Limited. Other activities or non Line Business activity has been excluded from these accounts.
(c) Receivables
Receivables are stated at their estimated realisable value after writing off bad debts for the period and making an allowance for doubtful debts. All known losses are written off in the period in which it becomes apparent the debts are not collectable.
(d) Inventories
Inventories are valued at the lower of cost or net realisable value on a weighted average cost basis.
(e) Property, Plant and Equipment
The network system assets were revalued as at 31 March 2002 to depreciated replacement cost (DRC) as assessed by independent valuers, KPMG. Subsequent additions have been recorded at cost.
All other assets are recorded at cost less accumulated depreciation.
Revaluation
The network system assets are revalued every five years or more regularly if necessary.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 92
Gazette.govt.nz —
NZ Gazette 2003, No 92
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Electricity Information Disclosure for Invercargill Limited
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🏭 Trade, Customs & Industry24 July 2003
Electricity, Financial Statements, Accounting Policies, Invercargill Limited