New Zealand Gazette – 2006 – No. 133

Page 3861

✨ Financial Statements Disclosure



Network Waitaki Limited Lines Business

1 Statement of Accounting Policies

REPORTING ENTITY

  • The financial statements presented here are for the Lines Business of Network Waitaki Limited.
  • The financial statements have been prepared in accordance with the Companies Act 1993 and the Financial Reporting Act 1993.
  • These financial statements have been prepared for the purpose of complying with the requirements of the Electricity Information Disclosure Requirements 2004.
  • The Lines Business operates a lines business activity, as defined by Regulation 2 of the Electricity Information Disclosure Regulations, in the Waitaki area.

MEASUREMENT BASE

  • 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.
  • Accrual accounting is used to match expenses and revenues.
  • Reliance is placed on the fact that the Company is a going concern.

ACCOUNTING POLICIES

The financial statements are prepared in accordance with New Zealand generally accepted accounting practice. The accounting policies that materially affect the measurement of financial performance, financial position, and cash flows are set out below:

Revenue

Goods and Services
Revenue comprised the amounts received and receivable for goods and services supplied to customers in the ordinary course of business.

Investment Income
Interest is 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.

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.

Depreciation

Depreciation is provided on all property, plant and equipment, other than freehold land, at rates that will allocate the assets' cost or valuation, to their residual values, over their estimated useful lives. All other assets are depreciated on a straight-line basis.

The useful lives and associated depreciation rates for major classes of assets used in the preparation of the financial statements are as follows:

Asset Class Useful Lives Depreciation Rates
Distribution system 10 to 70 years 1.4% to 10.0%
Freehold building 40 to 100 years 1.0% to 2.5%
Motor vehicles 4 to 7 years 15.0% to 26.0%
Plant and equipment 2 to 14 years 7.5% to 50.0%
Office furniture and equipment 3 to 10 years 10.0% to 33.0%

Gains and Losses

Disposal of property, plant and equipment are taken into account in determining the operating result for the year.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 133


Gazette.govt.nz — PDF NZ Gazette 2006, No 133




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🏭 Network Waitaki Limited Financial Statements Disclosure (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Cash Flows, Network Waitaki Limited