✨ Financial Statements Notes
NEW ZEALAND GAZETTE, No. 149
24 NOVEMBER 2006
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2006
1. STATEMENT OF ACCOUNTING POLICIES
Reporting Entity
These financial statements are for the lines business of Transpower New Zealand Limited Lines Business (The Transpower Lines Business).
The financial statements are presented in accordance with the State-Owned Enterprises Act 1986, the Financial Reporting Act 1993 and the Electricity Information Disclosure Requirements 2004.
The Electricity Information Disclosure Handbook has been followed in the preparation of these financial statements.
The avoidable cost allocation methodology (ACAM) is used for allocating costs and assets and liabilities between the Lines business and Other businesses.
Measurement Base
The measurement basis is historical cost except as modified by the revaluation of certain assets and investments.
Accounting Policies
The following accounting policies are applied:
(a) Principles of Consolidation
The Transpower Lines Business’s financial statements are prepared from the financial statements of Transpower and its subsidiaries which undertake lines business activities, as at 30 June 2006. The purchase method is used to consolidate subsidiary companies. All significant transactions between group companies are eliminated on consolidation.
(b) Revenue
Revenue shown in the Statement of Financial Performance comprises the amounts received and receivable by the Transpower Lines Business for transmission services. Dividends received and interest income from investments are included within net finance costs.
(c) Goods and Services Tax (GST)
The Statement of Financial Performance and the Statement of Cash Flows have been prepared so that all components are stated exclusive of GST. All items in the Statement of Financial Position are stated net of GST with the exception of receivables and payables which include GST invoiced.
(d) Current Assets
Receivables are stated at their estimated net realisable value.
Short term investments are recorded at their original cost which is adjusted for the amortisation of premiums and acccrual of discounts to maturity.
Stocks of materials are valued at the lower of cost, calculated on the weighted average cost basis and estimated net realisable value.
(e) Investments
Investments are recorded at the lower of cost and net realisable value.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 149
Gazette.govt.nz —
NZ Gazette 2006, No 149
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Notes to the Financial Statements for Transpower New Zealand Limited Lines Business
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🏭 Trade, Customs & Industry22 November 2006
Financial Statements, Accounting Policies, Transpower, Lines Business, 2006