✨ Financial Statement Related Party Transactions
854 NEW ZEALAND GAZETTE, No. 37 26 FEBRUARY 2008
14. RELATED PARTY TRANSACTIONS
(a) The Lines business enters into transactions with the "Other" Business. The
relationship is managed on an arms length basis, with significant contracts
generally awarded by the Lines business on a competitive tendering basis.
(b) & (c)
The services provided by the "Other" Business generally include normal
electrical construction, maintenance and fault response services related to the
Lines business electrical network.
(d) Services provided were in the following categories and at total prices as
indicated in $000:
| 2007 $000 |
2006 $000 |
|
|---|---|---|
| Construction of subtransmission assets | 70 | 66 |
| Construction of zone substations | - | - |
| Construction of distribution lines and cables | 1,045 | 821 |
| Construction of medium voltage switch gear | - | - |
| Construction of distribution transformers | 530 | 775 |
| Construction of distribution substations | 365 | 49 |
| Construction of low voltage reticulation | 1,638 | 442 |
| Construction of other system fixed assets | -3 | 38 |
| Maintenance of assets | 1,565 | 1,598 |
(e) Services were provided throughout the financial year.
(f) There were no outstanding trade balances owing at year-end for services
performed by the other business for the Lines business, as payment is effected
by way of accounting entry at the end of each month. Loan funding was
provided by the Other business to the Lines Business, as disclosed in Note 8. As
the Lines and Other Businesses operate as a single legal entity no formal loan
documentation is prepared in respect of loans between them. The loan has been
treated in the Lines Business financial statements as being on-call.
(g) No debts arising from related party transactions have been written off or
forgiven during the year.
(h) No transactions were undertaken at a nil or nominal value, other than minor
items as would occur in a normal arms length relationship.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 37
Gazette.govt.nz —
NZ Gazette 2008, No 37
✨ LLM interpretation of page content
💰
Statement of Accounting Policies for Counties Power Limited – Lines Business
(continued from previous page)
💰 Finance & Revenue26 February 2008
Financial Statements, Payables, Accruals, Fixed Assets, Depreciation, Distribution System Assets, Land and Buildings, Operating Lease Commitments, Capital Commitments, Contingent Liabilities, Financial Instruments, Credit Risk, Currency Risk, Interest Rate Risk, Fair Values, Related Party Transactions, Construction, Maintenance, Loan Funding