New Zealand Gazette – 2004 – No. 163

Page 4010

✨ Financial Statements Notes



4010

NEW ZEALAND GAZETTE, No. 163

14 DECEMBER 2004

Notes to the financial statements

1. Statement of accounting policies

Reporting entity

Electra Limited is registered under the Companies Act 1993.

The financial statements are those of the Line Business Activities only of Electra Limited and have been prepared in accordance the Electricity Information Disclosure Handbook issued by the Commerce Commission under Part 4A of the Commerce Act 1986.

Measurement base

The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on a historical cost basis are followed, with the exception that certain property, plant and equipment have been revalued.

Specific accounting policies

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

a) Property, plant and equipment

The Company has six classes of property, plant and equipment:

  1. Land and buildings
  2. Distribution Assets
  3. Leasehold Improvements
  4. Plant and Equipment
  5. Vehicles
  6. Work in Progress

The Company uses Optimised Deprival Value ("ODV") methodology in valuing distribution assets. This methodology recognises the economic value of distribution assets based on the earnings of segments of the network to the Company. The ODV of distribution assets is updated annually to reflect additions to the network and the earnings derived.

Land and buildings, other than those included in distribution assets, are stated at market valuation (refer note 9).

All other property, plant and equipment are recorded at cost less accumulated depreciation.

b) Infrastructure assets

In accordance with FRS-3 Electra has ceased using infrastructure accounting with effect from 1 April 2003.

Prior to April 2003 the Company used infrastructure accounting methods for its distribution assets other than zone substations. This method of accounting recognises that well planned maintenance of the network assets preserves the service potential of the infrastructure asset for the foreseeable future. Accordingly no depreciation is charged on the infrastructure assets, except for zone substations.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2004, No 163


Gazette.govt.nz — PDF NZ Gazette 2004, No 163




✨ LLM interpretation of page content

💰 Electra Limited - Notes to Financial Statements (continued from previous page)

💰 Finance & Revenue
14 December 2004
Financial Statements, Accounting Policies, Property, Plant, Equipment, Infrastructure Assets, ODV, Depreciation, Valuation, Commerce Commission