✨ Financial Statements
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
1. Statement of Accounting Policies
Reporting Entity and Statutory Base
These financial statements are for the lines business of Transpower New Zealand Limited Lines Business (the Lines Business). The financial statements are in New Zealand dollars.
The financial statements are presented in accordance with the State-Owned Enterprises Act 1986, the Financial Reporting Act 1993 and the Electricity Information Disclosure Requirements 2004.
Nature of Operations
Transpower is the owner and operator of New Zealand’s national electricity grid. Transpower is not a public benefit entity for the purposes of NZ IAS 1 "Presentation of Financial Statements".
Basis of Preparation
The Electricity Information Disclosure Handbook has been followed in the preparation of these financial statements.
The avoidable cost allocation methodology (ACAM) is used for allocating costs and assets and liabilities between the Lines business and Other businesses.
The Financial Reporting Act 1993 requires compliance with generally accepted accounting practice (GAAP) in New Zealand.
In December 2002, the New Zealand Accounting Standards Review Board announced that International Financial Reporting Standards (IFRS) will apply to all New Zealand entities for periods commencing on or after 1 January 2007. New Zealand has adopted its own version of IFRS, being the New Zealand equivalents to IFRS (NZ IFRS). The Group has adopted NZ IFRS for the period commencing 1 July 2007 and these financial statements have been prepared in compliance with NZ IFRS. In complying with NZ IFRS, the Group is also in compliance with IFRS.
Transition from existing GAAP to NZ IFRS has been made in accordance with NZ IFRS 1 "First-time Adoption of New Zealand Equivalents to International Financial Reporting Standards". Comparative information has been restated to conform to the requirements of NZ IFRS.
Measurement Basis
The measurement basis adopted in the preparation of these financial statements is historical cost except as modified by certain investments, held for sale assets, investment property, financial assets and financial liabilities as identified in specific accounting policies below.
Specific Accounting Policies
a) Basis of Consolidation
The Transpower Lines Business financial statements consolidate the financial statements of subsidiaries which undertake lines business activities using the purchase method. All significant intercompany accounts and transactions are eliminated on consolidation.
b) Goodwill
Goodwill, representing the excess of the cost of acquisition over the fair value of the identifiable assets, liabilities and contingent liabilities acquired, is recognised as an asset and not amortised, but tested for impairment annually. Any impairment is recognised immediately in the income statement and is not subsequently reversed.
c) Revenue
The Transpower Lines Business recognises revenue as it provides services or delivers products to customers.
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NZ Gazette 2008, No 186
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Transpower New Zealand Limited Lines Business Financial Statements
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🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Reporting Entity, Nature of Operations, Basis of Preparation, Measurement Basis, Consolidation, Goodwill, Revenue