✨ Financial Statements Notes
3876
NEW ZEALAND GAZETTE, No. 157
30 NOVEMBER 2004
NGC – Gas Transmission Activities
Notes to the Financial Statements
For the Year Ended 30 June 2004
1. Statement of Accounting Policies
a) Accounting Entity
The financial statements are those of NGC – Gas Transmission Activities (NGC). Gas Transmission Activities involves the ownership and the supply of line function services for the transportation of gas. With respect to the 2004 year, activities associated with third party services are excluded.
b) Special Purpose Financial Statements
The financial statements have been prepared in accordance with the Gas (Information Disclosure) Regulations 1997 and generally accepted accounting principles.
c) General Accounting Policies
The general accounting policies recognised as appropriate for the measurement and reporting of earnings and the financial position under the historical cost method, as modified by the revaluation of certain assets, have been followed in the preparation of these financial statements. This includes the going concern concept and the matching of revenue and expenses under the accrual concept.
d) Particular Accounting Policies
The following particular accounting policies which materially affect the measurement of financial performance and financial position have been adopted:
i) Revenue and Expenses
These financial statements are presented under the Avoidable Cost Allocation Methodology (ACAM). The 2003 comparatives have not been prepared on this basis. In November 2002 the Cabinet reaffirmed its May 2000 decision to mandate the use of the avoidable cost allocation methodology (ACAM) in the Gas (Information Disclosure) Regulations 1997. The Gas Control Inquiry being conducted by the Commerce Commission has been assessing the gas transportation businesses as stand alone entities which has involved the application of ACAM.
Revenue and expenses are stated exclusive of Goods and Services Tax (GST).
ii) Valuation of Fixed Assets
Pipelines, compressors and gate stations are recorded at the most recent valuation, adjusted by subsequent additions, disposals and depreciation. Valuations are carried out regularly and reviewed by independent experts, using the optimised deprival valuation methodology. All fixed assets other than pipelines, compressors and gate stations, are included at cost less accumulated depreciation.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2004, No 157
Gazette.govt.nz —
NZ Gazette 2004, No 157
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Certification of NGC Gas Transmission Activities Financial Statements
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🏭 Trade, Customs & Industry30 June 2004
Financial Statements, Revenue, Expenses, Gas Transmission, NGC