✨ Financial Statements Notes
THE LINES COMPANY LIMITED – LINES BUSINESS ACTIVITY
Notes to the Financial Statements
For the Year Ended 31 March 2007
NOTE 1: STATEMENT OF ACCOUNTING POLICIES
REPORTING ENTITY
The Lines Company Limited is owned by Waitomo Energy Services Customer Trust (75%) and King Country Electric Power Trust (25%) and is incorporated under the Companies Act 1993. The principal activity of the entity is the provision of electricity distribution services.
BASIS FOR PREPARATION
The financial statements of The Lines Company Limited – Lincs Business Activity have been prepared in accordance with the requirements of the Electricity (Information Disclosure) Regulations 2004 as amended by the Electricity Information Disclosure Amendment Requirements 2004 effective 8 May 2004 and the Electricity Information Disclosure Amendment Requirements 2006 and the Electricity Information Disclosure Handbook (2004) issued by the Commerce Commission.
These financial statements are prepared in accordance with New Zealand GAAP before the adoption of New Zealand equivalents to International Financial Reporting Standards (NZ IFRS). This basis varies from the Annual Report of The Lines Company which is prepared in accordance with NZ IFRS. The difference in treatment is intended to provide users of this Lines Business Activity report with comparable information within the requirements issued by the Commerce Commission.
The material difference between the figures in this report and NZ IFRS is related to the valuation of deferred tax. If these financial statements were prepared in accordance with NZ IFRS the deferred tax liability would increase by $16,369,000 to include the difference in tax base resulting from asset revaluations.
MEASUREMENT BASE
The financial information disclosure statements are prepared on the basis of historical cost modified by the revaluation of certain items of property, plant and equipment as identified in specific accounting policies below.
The Lines Company has adopted a policy to apply the avoidable cost allocation methodology (ACAM) described in the Electricity Information Disclosure Handbook 31 March 2004, for the allocation of revenues, costs, assets and liabilities between the regulated businesses and other activities of the company.
The electricity lines business is treated as a separate regulated standalone business.
The costs have been allocated on the following basis:
- Direct allocation of all components of financial statement items which are directly attributable to the specific businesses.
- For any components of financial statement items that are not directly attributable to a specific business:
- By assessing the proportions of those components which are avoidable and non-avoidable; and
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 56
Gazette.govt.nz —
NZ Gazette 2008, No 56
✨ LLM interpretation of page content
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Certification of Financial Statements for The Lines Company Limited
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💰 Finance & Revenue12 February 2008
Financial Statements, Performance Measures, Electricity (Information Disclosure) Regulations 2004, The Lines Company Limited, Certification