✨ Financial Statements Notes
THE LINES COMPANY LIMITED – LINES BUSINESS ACTIVITY
Notes to the Financial Statements
For the Year Ended 31 March 2007
- Allocating those components amongst the businesses on the basis of those proportions using an appropriate cost allocator.
The two main allocators used are employee costs and the book value of property plant and equipment.
All costs not allocated to the standalone electricity lines business, are allocated to other businesses within The Lines Company. Other businesses are not disclosed within these financial information disclosure statements.
Allocators are also utilised to allocate balance sheet assets and liabilities that are not directly attributable to the standalone business (for instance accounts payable related to allocated cost items).
Equity is represented by; the share capital of The Lines Company, the revaluation reserve arising from lines asset revaluations, retained earnings being the earnings of the lines business since its inception.
The value of loans is determined based on the value required to fund the balance sheet of the lines business.
The reporting currency is New Zealand dollars.
SPECIFIC ACCOUNTING POLICIES
The specific accounting policies used in the preparation of the financial statements are as follows:
a. Revenue and Receivables
Revenue
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services, including lines charges provided in the normal course of business, net of Goods and Services Tax. Recognition of network revenue is when the billing transactions are applied to network customers' accounts.
Receivables
Receivables are stated at their estimated realisable value.
b. Property, Plant and Equipment
Initial Recording
All items of property, plant and equipment are initially recognised at cost in the statement of financial position. Cost includes the value of consideration exchanged, or fair value in the case of donated or subsidised assets, and those costs directly attributable to bringing the item to working condition for its intended use.
Revaluation
Land and buildings are revalued to fair value. Valuations are obtained from an independent registered valuer every three years. Valuations may be obtained on a more frequent basis if there is an indication that the fair values have changed materially from the latest valuation. Land and buildings acquired since the last revaluation are recorded at historical cost.
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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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Notes to the Financial Statements for The Lines Company Limited
(continued from previous page)
💰 Finance & Revenue12 February 2008
Financial Statements, Accounting Policies, Revenue, Receivables, Property, Plant and Equipment, Allocation, Equity, Loans