✨ Financial Statements and Accounting Policies
NORTHPOWER LIMITED AND SUBSIDIARY
STATEMENT OF ACCOUNTING POLICIES
For The Year Ended 31 March 2007
Reporting Entity
Northpower Limited is a company formed under the Energy Companies Act 1992 and registered under the Companies Act 1993.
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:
(i) 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.
(ii) Investments
Investments are stated at cost and net realisable value. Any decreases are recognised in the Statement of Financial Performance.
(iii) 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.
(iv) Property, Plant and Equipment
Property, Plant and Equipment 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 Property, Plant and Equipment 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.
Buildings on land not owned by the Company are recorded at cost less depreciation and are not revalued.
Distribution system assets have been revalued to Depreciated Replacement Cost (DRC) as at 31 March 2007, based on a valuation conducted by PriceWaterhouseCoopers, Registered Valuers, as at 31 March 2007.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 11
Gazette.govt.nz —
NZ Gazette 2008, No 11
✨ LLM interpretation of page content
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Report of the Auditor-General to the Readers of the Financial Statements of Northpower Limited
(continued from previous page)
🏭 Trade, Customs & Industry20 December 2007
Audit, Financial statements, Northpower Limited, Auditor-General, Commerce Commission
🏭 Statement of Accounting Policies for Northpower Limited
🏭 Trade, Customs & IndustryAccounting policies, Financial statements, Northpower Limited, Energy Companies Act 1992, Financial Reporting Act 1993