✨ Financial Statements Notes
4 DECEMBER 2006 NEW ZEALAND GAZETTE, No. 164 4759
THE LINE COMPANY LIMITED
Lines Business Activity
Notes to the Financial Statements
For the Year Ended 31 March 2006
NOTE 1: STATEMENT OF ACCOUNTING POLICIES
REPORTING ENTITY
The Lines Company Limited is owned by Waitomo Energy Services Customer Trust (75%) and King Country Electric Power Trust (25%) and is incorporated under the Companies Act 1993. The principal activity of the entity is the provision of electricity distribution services.
BASIS FOR PREPARATION
The financial statements of The Lines Company Limited – Lines Business Activities have been prepared in accordance with the requirements of the Electricity (Information Disclosure) Regulations 2004 as amended by the Electricity (Information Disclosure) Amendment Regulations 2000 and the Electricity Information Disclosure Handbook (2004) issued by the Commerce Commission.
These financial statements are prepared in accordance with old New Zealand GAAP and have not been restated in accordance with New Zealand equivalents to International Financial Reporting Standards.
MEASUREMENT BASE
The financial statements have been prepared on the historical cost basis modified to include the revaluation of land and buildings and network assets. The network assets have been revalued to 31 March 2004 ODV less two year’s depreciation.
The reporting currency is New Zealand dollars.
SPECIFIC ACCOUNTING POLICIES
The specific accounting policies used in the preparation of the financial statements are as follows:
a. Receivables
Receivables are stated at their estimated realisable value.
b. Property, Plant and Equipment
Initial Recording
All items of property, plant and equipment are initially recognised at cost in the statement of financial position. Cost includes the value of consideration exchanged, or fair value in the case of donated or subsidised assets, and those costs directly attributable to bringing the item to working condition for its intended use.
Revaluation
Land and buildings are revalued to fair value. Valuations are obtained from an independent registered valuer every three years. Valuations may be obtained on a more frequent basis if there is an indication that the fair values have changed materially from the latest valuation. Land and buildings acquired since the last revaluation are recorded at historical cost.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 164
Gazette.govt.nz —
NZ Gazette 2006, No 164
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Notes to the Financial Statements for The Lines Company Limited
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💰 Finance & RevenueFinancial Statements, Accounting Policies, Reporting Entity, Measurement Base, Receivables, Property Plant and Equipment