✨ Financial Statements Certification
NGC Gas Transmission 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 Transmission Activities. NGC Gas Transmission Activities involves the ownership and the supply of line function services for the transportation of gas. Activities associated with third party services have been excluded from 2004 onwards. 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 information disclosure statements are prepared on the basis of historical cost modified by the revaluation of certain items of property, plant and equipment as identified in specific accounting policies below.
Vector group has adopted a policy to apply the avoidable cost allocation methodology (ACAM) described in the Electricity Information Disclosure Handbook 31 March 2004, for the allocation of revenues, costs, assets and liabilities between the regulated businesses and other activities of the company. Under the Gas (Information Disclosure) Regulation 1997, there is no specific requirement to apply the ACAM methodology and ACAM is not specifically defined in respect of the gas transmission business. Thus Vector group has followed the Electricity Information Disclosure Handbook in allocating costs to the regulated business.
The NGC gas transmission business is treated as separate regulated standalone business. The costs have been allocated on the following basis:
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Direct allocation of all components of financial statement items which are directly attributable to the specific businesses.
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For any components of financial statement items that are not directly attributable to a specific business:
- By assessing the proportions of those components which are avoidable and non-avoidable; and
- Allocating those components amongst the businesses on the basis of those proportions using an appropriate cost allocator.
The two main allocators used are the number of employees and the book value of property plant and equipment. Some costs like integration costs, IT costs and non-system asset depreciation are separately analysed and are allocated using allocators specific to those costs. All costs not allocated to the standalone gas transmission business, are allocated to other businesses within the Vector group. Other businesses are not disclosed within these financial information disclosure statements.
Debt and equity are allocated to the standalone business on the basis of the debt to equity ratio of the Vector group.
Vector group has undertaken a review of the application of the ACAM methodology in the current year and adjusted some allocators used to ensure that ACAM is applied across the group in a consistent manner.
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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 Transmission Financial Statements
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💰 Finance & Revenue28 November 2006
Financial Statements, Gas Transmission, Certification, Gas (Information Disclosure) Regulations 1997