New Zealand Gazette – 2006 – No. 140

Page 4057

✨ Financial Statements Notes



Alpine Energy Limited Lines Business

Notes to and Forming Part of the Financial Statements

For the Year Ending 31 March 2006

1. Statement of Accounting Policies

These financial statements have been prepared for the purpose of complying with the requirements of the Electricity Information Disclosure Requirements 2004.

The financial information presented is for the line business activities of Alpine Energy Limited. There are also additional activities of the Company that are not required to be reported under the Requirements.

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.

a) 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

Dividend income is recognised in the period the dividend is declared.
Interest and rental income are accounted for as earned.

b) Customer Contributions

Contributions from customers, in relation to the construction of new lines for the network, and contributions from district councils towards the costs of replacing overhead lines with underground cables are accounted for as income in the year in which they are received.

c) Capital and Operating Expenditure

Capital expenditure relates to expenditure incurred in the creation of a new asset and expenditure incurred on existing reticulation system assets to the extent the system is enhanced.

Operating expenditure relates to expenditure which restores an asset closer to its original condition and includes expenditure incurred in maintaining and operating the fixed assets of the network.

d) Depreciation

Depreciation is charged as follows:

  • System Property, Plant and Equipment - straight line over useful life (from 10 to 80 years)
  • Buildings 1 to 2.5% of cost
  • Plant and Office Equipment 8 to 60% on diminishing value

Depreciation for taxation purposes recognises that:

  • Additions to the network exclude any allocation of indirect costs.
  • Only 80% of the book value of the Globo distribution system at 1 April 1987 is depreciated.

e) Taxation

The taxation charge is the estimated liability payable in respect of the accounting profit for the year, adjusted for non assessable income and non deductible costs and including any adjustments in respect of prior years.

f) Accounts Receivable

Accounts receivable are stated at estimated realisable value after making provision for doubtful debts. Bad debts are written off during the period in which they are identified.

g) Property, Plant and 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.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 140


Gazette.govt.nz — PDF NZ Gazette 2006, No 140




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🏭 Alpine Energy Limited Financial Statements for Lines Business (continued from previous page)

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Financial Statements, Electricity Information Disclosure Requirements, Alpine Energy Limited, Lines Business