New Zealand Gazette – 2008 – No. 30

Page 650

✨ Financial Statements Notes



Notes to the financial statements

1. Statement of accounting policies

Reporting entity

Electra Limited is registered under the Companies Act 1993.

The financial statements are those of the Line Business Activities only of Electra Limited and have been prepared in accordance with the Electricity Information Disclosure Handbook issued by the Commerce Commission under Part 4A of the Commerce Act 1986.

Measurement base

The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on a historical cost basis are followed, with the exception that certain property, plant and equipment have been revalued. Revenue and expenditure are reported on an accrual basis with the exception of those items referred to in specific accounting policies.

Specific accounting policies

The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied:

a) Property, plant and equipment

The Company has six classes of property, plant and equipment:

  1. Land and buildings
  2. Distribution Assets
  3. Leasehold Improvements
  4. Plant and Equipment
  5. Vehicles
  6. Work in Progress

All owned items of property, plant and equipment are initially recorded at cost. The cost of an item of property, plant and equipment comprises its purchase price plus any other costs directly attributable to bringing the item to working condition for its intended use.

The cost of self-constructed property, plant and equipment includes the cost of all materials used in construction, direct labour, costs of obtaining resource management consents, financing costs that are attributable to the project and an appropriate proportion of the variable and fixed overheads. Costs cease to be capitalised as soon as the property, plant and equipment is ready for productive use and do not include any inefficiency costs.

Subsequent expenditure relating to an item of property, plant and equipment is added to its gross carrying amount when such expenditure either increases the future economic benefits beyond its existing service potential, or is necessarily incurred to enable future economic benefits to be obtained, and that expenditure would have been included in the initial cost of the item had the expenditure been incurred at that time.

Distribution system assets are revalued every three years to fair value, or more regularly if necessary to ensure that no individual item of property, plant and equipment within a class is included at a valuation that is materially different



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2008, No 30


Gazette.govt.nz — PDF NZ Gazette 2008, No 30




✨ LLM interpretation of page content

💰 Electra Limited - Notes to the financial statements (continued from previous page)

💰 Finance & Revenue
Accounting policies, Reporting entity, Measurement base, Property, Plant and equipment, Electra Limited