✨ Financial Statements
POWERCO LIMITED
Gas Division
Statement of Accounting Policies for the Financial Statements for the Year ended 30 June 2008
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 and Group, 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 27 November 2008.
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 2008, that have had a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are discussed below:
Useful lives of property, plant and equipment
The Division reviews the estimated useful lives of property, plant and equipment at the end of each annual reporting period. In this financial year it was deemed that no change to the estimated useful lives was needed.
Impairment of Network Assets
Determining whether the network assets are impaired requires an estimation of the value in use of the cash-generating units to which the networks have been allocated. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value.
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.
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NZ Gazette 2008, No 191
✨ LLM interpretation of page content
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Powerco Limited Gas Information Disclosure Certification
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🏭 Trade, Customs & Industry27 November 2008
Gas, Information Disclosure, Financial Statements, Performance Measures, Powerco Limited