New Zealand Gazette – 2005 – No. 14

Page 311

✨ Financial Statements



Buller Electricity Limited

Line Business Financial Statements

Notes to and forming part of the Financial Statements

for the year ended 31 March 2004

1 STATEMENT OF ACCOUNTING POLICIES

Reporting Entity

Buller Electricity Limited is a company registered under the Companies Act 1993 and owns 100% of Buller Energy Limited and 100% of Buller Communications Limited.

These financial statements have been prepared in accordance with the Companies Act 1993, the Financial Reporting Act 1993 and Section 44 of the Energy Companies Act 1992.

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 by the Company.

Specific Accounting Policies

The following particular accounting policies which materially affect the measurement of the financial performance 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 2004 on an optimised deprival valuation basis by independent valuers. This valuation is not materially different from depreciated replacement cost.

Land and buildings were revalued by Coast Valuations Limited an independent registered valuer as at 31 March 2004 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 2005, No 14


Gazette.govt.nz — PDF NZ Gazette 2005, No 14




✨ LLM interpretation of page content

🏭 Information for Disclosure pursuant to Section 57T of the Commerce Act 1986 (continued from previous page)

🏭 Trade, Customs & Industry
14 December 2004
Electricity Information Disclosure, Financial Statements, Performance Measures, Buller Electricity Limited