✨ Financial Statements
NGC Gas Retailing Activities
Statement of Accounting Policies
For the Year Ended 30 June 2006
For the purposes of the Gas (Information Disclosure) Regulations 1997
a) Accounting Entity
The financial statements are presented for the NGC Gas Retailing Activities (NGC). Gas Retailing Activities involve the supply of gas to gas customers. These financial statements apply solely to the activities of NGC. The NGC group of companies are wholly owned subsidiaries of Vector Limited.
b) Special Purpose Financial Statements
The financial statements have been prepared in accordance with the Gas (Information Disclosure) Regulations 1997.
c) Measurement Base
The financial statements are prepared on the basis of historical cost. For the purpose of cost allocation, NGC Gas Retailing Activities are treated as an incremental business. Businesses treated as incremental receive an allocation of the residual costs after costs have been allocated using the principles of Avoidable Cost Allocation Methodology (ACAM) to businesses that are treated as standalone. ACAM is mandated for allocating revenues, costs, assets and liabilities between "lines" and "other" activities in the Electricity Information Disclosure Handbook 31 March 2004. Vector has chosen to apply ACAM to all of its standalone businesses. This approach was adopted for the first time for the 2006 financial period.
d) General Accounting Policies
The general accounting policies as recommended by the New Zealand Institute of Chartered Accountants for the measurement and reporting of financial performance and financial position, under the historical cost method, as modified by the revaluation of certain assets, have been followed in the preparation of these financial statements.
e) Specific Accounting Policies
The following particular accounting policies, which materially affect the measurement of financial performance and financial position have been adopted:
i) Property, Plant and Equipment
All property, plant and equipment are included at cost less accumulated depreciation.
Construction in progress is recorded at cost. For projects having a cost in excess of $500,000 and a construction period of not less than three months, finance costs relating to that project are capitalised. The finance costs capitalised are based on the actual cost directly attributable to the construction of the asset. Where this is not clearly identifiable, the weighted average cost of debt is applied to allocate a portion of finance costs to the project.
Assets constructed are commissioned and transferred from construction in progress to property, plant and equipment as each facility or operating unit within a facility becomes operational and available for use.
ii) Current Assets
Accounts receivable and all other current assets are valued at their estimated realisable value.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 154
Gazette.govt.nz —
NZ Gazette 2006, No 154
✨ LLM interpretation of page content
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Certification of NGC Gas Retailing Financial Statements
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💰 Finance & Revenue9 November 2006
Financial Statements, Gas Retailing, Audit Certification, NGC Holdings Limited, Revenue, Expenses, Income Tax