✨ Financial Statements
POWERCO LIMITED
Gas Division
Statement of Accounting Policies for the Financial Statements for the Year ended 30 June 2007
Reporting Entity
These financial statements represent the performance and position of Powerco Limited’s gas business (Powerco gas division).
The financial statements are presented in accordance with the Gas (Information Disclosure) Regulations 1997.
The financial statements have been derived from the audited financial statements of Powerco Limited, which were prepared in accordance with New Zealand equivalents to financial reporting standards (NZ IFRS), as appropriate for profit-orientated entities.
Due to the absence of a Gas Information Disclosure Handbook, the Electricity Information Disclosure Handbook has been used as a guide in the preparation of these financial statements.
The avoidable cost allocation methodology (ACAM) has been used to allocate costs, assets and liabilities between the gas business and other businesses of Powerco Limited.
The financial statements were approved for issue on 27th November 2007.
Critical accounting estimates and judgements
In the process of applying the division’s accounting policies management have made no judgements that have had a significant effect on the amounts recognised in the financial statements.
The key assumptions concerning the future and other key sources of estimation uncertainty at 30 June 2007, that have had a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are discussed below.
Basis of preparation
The financial statements have been prepared on the historical cost basis, except for certain borrowings and financial instruments. Financial derivatives are carried at fair value and borrowings which have effective fair value hedges are carried at amortised cost adjusted for the fair value of interest rate risk covered by the effective hedge. The principal accounting policies adopted are set out below.
a) Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, cash in banks and investments in money market instruments. Bank overdrafts are shown within borrowings in the Balance Sheet.
b) Property, plant and equipment
All items of property, plant and equipment are initially recognised at cost in the Balance Sheet. Cost includes the value of consideration exchanged, or fair value in the case of donated or
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2007, No 133
Gazette.govt.nz —
NZ Gazette 2007, No 133
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Powerco Gas Division Accounting Policies
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🏭 Trade, Customs & Industry27 November 2007
Accounting Policies, Financial Statements, Gas Division, Powerco, Reporting Entity, Critical Accounting Estimates, Basis of Preparation, Cash Equivalents, Property Plant Equipment