✨ Financial Statements
NGC – Gas Transmission Activities
Statement of Accounting Policies
For the Year Ended 30 June 2005
For the purposes of the Gas (Information Disclosure) Regulations 1997
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. Activities associated with third party services have been excluded from 2004 onwards. These financial statements apply solely to the activities of NGC New Zealand Limited but are published in the names of both NGC New Zealand Limited and Vector Limited because of Vector’s ownership of the NGC Group.
b) Special Purpose Financial Statements
The financial statements have been prepared in accordance with the Gas (Information Disclosure) Regulations 1997.
c) General Accounting Policies
The general accounting policies as recommended by the New Zealand Institute of Chartered Accountants for the measurement and reporting of financial performance and 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.
d) Particular Accounting Policies
The following particular accounting policies, which materially affect the measurement of financial performance and financial position have been adopted:
i) Revenues and Expenses
These financial statements are presented under the Avoidable Cost Allocation Methodology (ACAM). In November 2002 the Cabinet reaffirmed its May 2000 decision to mandate the use of 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.
ii) Valuation of Property, Plant and Equipment
Pipelines, compressors and gate stations are recorded at the most recent valuation, adjusted by subsequent additions, disposals and depreciation. Valuations are carried out every three years and reviewed by independent experts, using the optimised deprival valuation methodology.
All property, plant and equipment other than pipelines, compressors and gate stations are included at cost less accumulated depreciation.
Under the modified historical cost method, the revaluation, reflecting the difference between the net carrying value of the assets and the valuation (net of deferred tax), is recorded in the asset revaluation reserve. In arriving at the net carrying value any accumulated depreciation is written back against the asset value. The revaluation increase or decrease is transferred from the revaluation reserve to retained earnings on the disposal of an asset.
Construction in progress is recorded at cost. For projects having a cost in excess of $500,000 and a construction period of not less than three months, finance costs relating to that project are capitalised. The finance costs capitalised are based on the actual cost directly attributable to the construction of the asset. Where this is not clearly identifiable, NGC’s cost of debt is used.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 199
Gazette.govt.nz —
NZ Gazette 2005, No 199
✨ LLM interpretation of page content
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Certification of NGC Gas Transmission Financial Statements
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🏭 Trade, Customs & Industry30 November 2005
Financial Statements, Audit, Gas Industry, NGC Holdings Limited, Gas (Information Disclosure) Regulations 1997