✨ Financial Statements Notes
THE POWER COMPANY LIMITED LINE BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2007
29 FEBRUARY 2008 NEW ZEALAND GAZETTE, No. 43
1247
1. STATEMENT OF ACCOUNTING POLICIES
Reporting Entity
The Power Company Limited is wholly owned by a Consumer Trust and is registered under the Companies Act 1993.
The Parent Entity consists of the network assets of The Power Company Limited.
The Group consists of the Line Business network assets of The Power Company Limited, along with the joint venture interests in PowerNet Limited, held by The Power Company Limited’s wholly owned subsidiary Last Tango Limited.
Purpose of the Financial Statements
These financial statements have been prepared for the purpose of complying with the Electricity Information Disclosure Requirements 2004 and relate to the Group’s Line Business incorporating the conveyance of electricity, ownership of works for conveyance of electricity and provision of line function services in accordance with Requirement 6 of the Requirements.
The activities of the Parent have been separately disclosed in these Financial Statements as that is a requirement of generally accepted accounting practice. The Parent activities are not required under the Requirements.
Measurement Base
The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on an historical cost basis are followed by the Group with the exception that certain property, plant and equipment have been revalued.
Specific Accounting Policies
a) Principles of Consolidation
The interest in PowerNet Limited has been accounted for at the Group level on a line by line consolidation of revenue and expenses after the elimination of all significant inter-company transactions.
b) Revenue
Network Charges
Revenue comprises the amounts received and receivable for goods and services supplied to customers in the ordinary course of business.
Investment Income
Interest and dividend income are accounted for as earned.
Customer Contributions
Contributions from customers in relation to the construction of new lines for the network are accounted for as income in the year in which they are received.
c) Avoidable Cost Allocation Methodology
The Avoidable Cost Allocation Methodology as described in the Electricity Information Disclosure Handbook has been used to separate “Other” activities from The Power Company Limited and PowerNet Limited. Other activities or non Line Business activity has been excluded from these accounts.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 43
Gazette.govt.nz —
NZ Gazette 2008, No 43
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Financial Statements for The Power Company Limited Line Business
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