✨ Financial Statements Notes
THE POWER COMPANY LIMITED LINE BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2004
18 JANUARY 2005 NEW ZEALAND GAZETTE, No. 16
1. STATEMENT OF ACCOUNTING POLICIES
Reporting Entity
The Power Company Limited is wholly owned by a Consumer Trust and is registered under the Companies Act 1993.
The Line Business reports on the network assets of The Power Company 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 Electricity Information Disclosure Requirements 2004 and 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 Requirement 6 of the Requirements.
Measurement Base
The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on an historical cost basis with the exception of certain items for which specific accounting policies are identified.
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) Revenue
Network Charges
Revenue comprised the amounts received and receivable for goods and services supplied to customers in the ordinary course of business.
Investment Income
Interest and dividend income are accounted for as earned.
Customer Contributions
Contributions from customers in relation to the construction of new lines for the network are accounted for as income in the year in which they are received.
c) Avoidable Cost Allocation Methodology
The Avoidable Cost Allocation Methodology has been used to separate "Other" activities from The Power Company Limited and PowerNet Limited. Other activities or non Line Business activity has been excluded from these accounts.
d) Receivables
Receivables are stated in their estimated realisable value. All known losses are written off in the period in which it becomes apparent the debts are not collectable.
e) Inventories
Inventories are stated at the lower of cost of weighted average cost price and net realisable value.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 16
Gazette.govt.nz —
NZ Gazette 2005, No 16
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Financial Statements for The Power Company Limited Line Business
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🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Reporting Entity, Measurement Base, Revenue, Consolidation, Customer Contributions, Avoidable Cost Allocation