Financial Statements Notes




4382

NEW ZEALAND GAZETTE, No. 151

27 NOVEMBER 2006

HORIZON ENERGY DISTRIBUTION LIMITED – Lines Business

Financial Statements for the purposes of the

Electricity Information Disclosure Requirements 2004

Notes to the Financial Statements

for the year ended 31 March 2006

vii) Financial Instruments

Financial instruments with off-balance sheet risk have been entered into for the primary purpose of reducing exposure to fluctuations in interest rates. Horizon Energy Distribution Limited primarily uses interest rate swaps to reduce exposure to fluctuations in interest rates. The Company’s Treasury Policy governs the duration and proportion of debt hedged. While financial instruments are subject to risk that market rates may change subsequent to acquisition, such changes would generally be offset by opposite effects on the items hedged.

Financial instruments entered into with no underlying exposure are accounted for on a mark to market basis.

ii) Research and Development

Costs incurred on all research and development projects are written off as incurred, except that development costs are capitalised to the extent that such costs are expected, beyond any reasonable doubt, to be recovered.

ix) Comparatives

The statements and notes do not restate comparatives or provide comparatives for changes to reflect the mandatory ACAM methodology or for new disclosure items per the Electricity Information Disclosure Requirements 2004.

C. Changes in Accounting Policies

There have been no changes in accounting policies.



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Online Sources for this page:

VUW Te Waharoa PDF NZ Gazette 2006, No 151


Gazette.govt.nz PDF NZ Gazette 2006, No 151





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🏭 Notes to the Financial Statements for Horizon Energy Distribution Limited (continued from previous page)

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Financial Statements, Accounting Policies, Horizon Energy Distribution Limited, Financial Instruments, Research and Development, Comparatives