✨ Financial Accounting Policies
Unison Networks Limited – Lines Business
Statement of Significant Accounting Policies
For the year ended 31 March 2007
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
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Reporting Entity
Unison Networks Limited (Unison) is registered as a Company under the Companies Act 1993, and is an Energy Company in terms of the Energy Companies Act 1992.
The financial statements have been prepared in accordance with the relevant provisions of these two Acts, the Financial Reporting Act 1993 and the Electricity Information Disclosure Requirements 2004.
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Measurement System
The general accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on a historical cost basis is followed by Unison, with the exception that certain property, plant and equipment have been revalued.
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Specific Accounting Policies
The following particular accounting policies, which materially affect the measurement of profit and the financial position, have been applied:
a. Property, Plant and Equipment
Owned Assets
All items of property, plant and equipment are initially recorded at cost, and except for land, depreciated. These costs include the purchase consideration plus, where appropriate, site preparation costs, installation costs and all relevant overheads. Costs cease to be capitalised when substantially all the activities necessary to bring an asset to its intended location and condition are complete.
The electrical distribution network is independently valued at fair value based on Depreciated Replacement Cost (DRC).
Land and buildings not included in the electrical distribution network are stated at valuation determined by an independent registered valuation company, and are adjusted for additions at cost and depreciation at appropriate rates. The basis of valuation is fair value as defined under the Financial Reporting Standard 3 – Accounting for property, plant and equipment.
The electrical distribution network is revalued on a cyclical basis with no components being recognised at a valuation undertaken more than three years previously.
Land and buildings are revalued on a cyclical basis at no more than 5 yearly intervals.
Any revaluation surplus arising on the revaluation of a class of property, plant or equipment is transferred directly to the asset revaluation reserve. A revaluation deficit in excess of the asset revaluation reserve balance for the class of property, plant or equipment is recognised in the Statement of Financial Performance in the period it arises. Revaluation surpluses which reverse previous revaluation deficits recognised in the Statement of Financial Performance are recognised as revenue in the Statement of Financial Performance.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 53
Gazette.govt.nz —
NZ Gazette 2008, No 53
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Unison Networks Limited - Lines Business Financial Position Statement
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