✨ Electricity Financial Statements
ELECTRICITY INVERCARGILL LIMITED LINE BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2007
- STATEMENT OF ACCOUNTING POLICIES
Reporting Entity
Electricity Invercargill Limited is a company registered under the Companies Act 1993. The Company is a wholly-owned subsidiary of Invercargill City Holdings Limited.
The Parent Entity consists of the network assets of Electricity Invercargill Limited.
The Group consists of the Lines Business network assets of Electricity Invercargill Limited, along with the joint venture interests in PowerNet Limited, held by Electricity Invercargill Limited’s wholly owned subsidiary Pylon 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. These statements should be read in conjunction with the general purpose audited financial statements for the year ended 31 March 2007. Note that the 31 March 2007 general purpose audited financial statements were prepared under New Zealand international financial reporting standards (NZ IFRS) whereas these regulatory financial statements have been prepared under New Zealand financial reporting standards (previous GAAP). Refer to note 15 for a description of the impacts of the difference in treatment.
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 measurement base adopted is that of historical cost except for the revaluation of certain items of property, plant and equipment as stated. Reliance is placed on the fact that Electricity Invercargill Limited is a going concern.
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.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 44
Gazette.govt.nz —
NZ Gazette 2008, No 44
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Electricity Invercargill Limited Line Business Financial Statements
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