✨ Financial Statements
Scanpower Limited
Statement of Significant Accounting Policies
For the Year Ended 31 March 2007
Basis of Preparation
Scanpower Limited (Scanpower) is a public company registered under the Companies Act 1993. These financial statements have been prepared for the purposes of complying with the requirements of the Electricity Information Disclosure Requirements 2004.
The financial statements comprise separate a Statement of Financial Performance, Statement of Movements in Equity, Statement of Financial Position, and a Statement of Cash Flows for the Scanpower electricity distribution business. This business operates in the Southern Hawkes Bay area.
For general accounting purposes, the historic cost basis has been recognised as appropriate for the measurement and reporting of earnings and financial position, with the exception that certain fixed assets have been revalued.
The financial statements have been prepared in accordance with New Zealand generally accepted accounting practice. The policies that materially affect the measurement of financial performance, position and cash flows are set out below.
Operating Revenue
Revenue comprises amounts earned for the sale of the company’s products and services net of returns, trade allowances and taxes paid. Interest income is accounted for as earned.
Taxation
The income tax expense is recognised on the operating surplus before taxation, adjusted for permanent differences between taxable and accounting income. Deferred tax is calculated using the comprehensive basis under the liability method. This method involves recognising the tax effect of all timing differences between accounting and taxable income as a deferred tax asset or liability in the Statement of Financial Position. The future tax benefit or provision for deferred tax is stated at the income tax rates prevailing at the balance date. Future tax benefits are not recognised unless realisation of the asset is virtually certain.
Goods and Services Tax
The Statement of Financial Performance and Statement of Cash Flows have been prepared so that all components are stated exclusive of GST. All items in the Statement of Financial Position are stated net of GST, with the exception of receivables and payables which include GST invoiced.
Receivables
Receivables are carried at anticipated realisable value after providing for doubtful receivables based on a review of all outstanding amounts at year end. Bad debts are written off in the year in which they are identified.
Inventories
Inventories are valued at the lower of weighted average cost and net realisable value.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 52
Gazette.govt.nz —
NZ Gazette 2008, No 52
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Scanpower Limited Financial Statements
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💰 Finance & RevenueFinancial Performance, Revenue, Expenses, Surplus, Equity, Scanpower Limited