✨ Financial Statements Notes
Network Waitaki Limited Lines Business
Notes to and Forming Part of the Financial Statements
for the Year Ending 31 March 2004
1. Statement of Accounting Policies
a) Reporting Entity
(i) The Financial Statements presented here are for the Line Business of Network Waitaki Limited.
(ii) The Financial Statements have been prepared in accordance with the Companies Act 1993 and the Financial Reporting Act 1993.
(iii) These financial statements have been prepared for the purpose of complying with the requirements of the Electricity Information Disclosure Requirements 2004.
(iv) The Line Business operates a line business activity, as defined by Regulation 2 of the Electricity Information Disclosure Regulations, in the Waitaki area.
b) Measurement Base
(i) The Financial Statements have been prepared on the basis of Historical Cost with the exception of certain items for which specific accounting policies are identified.
(ii) Accrual accounting is used to match expenses and revenues.
(iii) Reliance is placed on the fact that the Company is a going concern.
c) Accounting Policies
(i) Accounts Receivable are shown at expected realisable value after providing for doubtful debts.
(ii) Inventories are valued at the lower of cost or net realisable value. Serial numbered stock is recorded at the appropriate individual value, while other stock is recorded at weighted average cost.
(iii) Property, Plant & Equipment
All property, plant and equipment are initially recorded at cost. System Property, Plant and Equipment are subsequently revalued to net current value as determined by an independent valuer using the depreciated replacement cost valuation method. Other Property, Plant and Equipment are stated at cost less an allowance for depreciation.
(iv) These accounts are exclusive of GST except for Accounts Receivable and Accounts Payable.
(v) Income tax expense has been calculated using the liability method. Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is recognised only if there is virtual certainty of realisation.
(vi) Investments are stated at cost.
(vii) Contributions received toward Capital Works are recorded in the Statement of Financial Performance and shown as income earned in the year in which they are received.
d) Changes in Accounting Policy: There have been no changes in accounting policies.
e) Methodology of Separation of Business: The basis of allocation adopted is the avoidable cost methodology.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 21
Gazette.govt.nz —
NZ Gazette 2005, No 21
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Network Waitaki Limited Financial Statements Notes
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🏭 Trade, Customs & Industry23 December 2004
Financial Statements, Accounting Policies, Electricity Information Disclosure Requirements, Network Waitaki Limited