New Zealand Gazette – 2003 – No. 98

Page 2589

✨ Financial Statements



12 AUGUST
NEW ZEALAND GAZETTE
2589

Buller Electricity Limited
Line Business Financial Statements

Notes to and forming part of the Financial Statements
for the year ended 31 March 2003

1 STATEMENT OF ACCOUNTING POLICIES

Reporting Entity

The reporting entity is Buller Electricity Limited.

Buller Electricity Limited is a public company registered under the Companies Act 1993. The financial statements have been prepared in accordance with and for the purpose of complying with the requirements of the Electricity (Information Disclosure) 1999, the Electricity (Information Disclosure) Amendment Regulations 2000 and the Electricity (Information Disclosure) Amendment Regulations 2001.

Measurement Base

The general accounting policies recognised as appropriate for the measurement and reporting of performance, cash flows and financial position under the historical cost method, as modified by the revaluation of certain assets, have been followed in the preparation of these statements.

Specific Accounting Policies

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

a) Revenue
Fixed and variable line charges are recognised as actual amounts invoiced during the period. Contributions received from customers towards the cost of reticulating subdivisions and constructing line extensions are recognised as revenue in the year received.

b) Receivables
Receivables are stated at their estimated realisable value after providing for doubtful debts. All known bad debts have been written off during the year.

c) Investments
Investments are recorded at the lower of cost or net realisable value.

d) Property, Plant and Equipment
The Distribution System Assets were revalued as at 31 March 2001 under the comprehensive audit carried out by the Commerce Commission during 2002 on an optimised depreciated replacement cost basis by independent valuers resulting in a reduction in value of $98,491. Additions to the Distribution System Assets since revaluation are stated at cost less depreciation.

Assets constructed by the company are capitalised at direct cost.

Land and buildings were revalued by Coast Valuations Limited an independent registered valuer as at 31 March 2001 in accordance with the New Zealand Institute of Valuers Asset Valuation Standards at net current value.

All other fixed assets are recorded at cost less accumulated depreciation.

e) Depreciation
Depreciation is provided on a straight line basis so as to write off the cost of the fixed assets to their expected residual value over their estimated useful lives as follows:

Buildings                    40 – 50 years
Distribution System Assets     3 – 60 years
Other                        3 – 10 years

Depreciation has been charged on a monthly basis on assets acquired and which became operational during the month.


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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2003, No 98


Gazette.govt.nz — PDF NZ Gazette 2003, No 98




✨ LLM interpretation of page content

🏗️ Buller Electricity Limited Financial Statements (continued from previous page)

🏗️ Infrastructure & Public Works
Electricity, Financial Statements, Accounting Policies, Revenue, Receivables, Investments, Property, Depreciation