New Zealand Gazette – 2006 – No. 163

Page 4732

✨ Financial Statements



NORTHPOWER LIMITED AND SUBSIDIARY

STATEMENT OF ACCOUNTING POLICIES

For The Year Ended 31 March 2006

Reporting Entity

Northpower Limited is a company formed under the Energy Companies Act 1992 and registered under the Companies Act 1993. The group consists of Northpower Limited and its subsidiary Metro Power Limited.

The financial statements have been prepared in accordance with the Financial Reporting Act 1993 and Section 44 of the Energy Companies Act 1992.

Measurement Base

The general accounting policies recognised as appropriate for the measurement and reporting of results, cashflows and financial position under the historical cost method, as modified by the revaluation of land, buildings and the distribution system assets, have been followed in the preparation of these financial statements.

Particular Accounting Policies

The following particular accounting policies, which significantly affect the measurement of profit and of financial position, have been applied:

  1. Basis of Consolidation - Purchase Method

    The consolidated financial statements include the holding company and its subsidiary, accounted for using the purchase method. All significant intercompany transactions are eliminated on consolidation. In the parent company's financial statements, investments in the subsidiary are stated at cost.

  2. Operating Revenue

    Operating Revenue shown in the Statement of Financial Performance comprise the amounts received and receivable by the Company for goods and services supplied to customers in the ordinary course of business. Operating Revenue is stated exclusive of Goods and Services Tax collected from customers.

  3. Investments

    Investments are stated at cost and net realisable value. Any decreases are recognised in the Statement of Financial Performance.

  4. Properties Intended For Sale

    Properties intended for sale are classified as current assets if sale is expected within 1 year. Such properties are shown at carrying value unless this exceeds net realisable value.

  5. Fixed Assets

    All fixed assets are initially recorded at historical cost except for land and buildings, and distribution system assets, which are valued as detailed below.

    The cost of purchased fixed assets is the value of the consideration given to acquire the assets and the value of other directly attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended service.

    The cost of assets constructed by the Company includes the cost of all materials used in construction, direct labour on the project and an appropriate proportion of production overhead. Costs cease to be capitalised as soon as the asset is ready for productive use.

    Land and buildings have been revalued to fair value based on a valuation conducted by Telfer Young (Northland) Ltd, Registered Valuers of Whangarei, as at 31 March 2006.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 163


Gazette.govt.nz — PDF NZ Gazette 2006, No 163




✨ LLM interpretation of page content

💰 Northpower Limited and Subsidiary Statement of Accounting Policies (continued from previous page)

💰 Finance & Revenue
31 March 2006
Financial statements, Accounting policies, Northpower Limited, Metro Power Limited, Energy Companies Act 1992, Financial Reporting Act 1993