✨ Financial Statements
OTAGONET JOINT VENTURE LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE FOR THE YEAR ENDED 31 MARCH 2007
GENERAL ACCOUNTING POLICIES
Reporting Entity
OtagoNet is an unincorporated Joint Venture. The parties to the Joint Venture are Marlborough Lines Limited (51%), Electricity Invercargill Limited (24.5%) and The Power Company Limited (24.5%). These interests are represented through their wholly owned subsidiaries Southern Lines Limited, Pylon Limited and Last Tango Limited. Effective control of the Joint Venture is shared by all investors through the Joint Venture Agreement: for this reason OtagoNet is treated as a Joint Venture.
These financial statements have been prepared for the purpose of complying with the Electricity Information Disclosure Requirements 2004 and relate to the Joint Venture’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.
The principal activity of OtagoNet Joint Venture is that of an electricity lines business.
Measurement Base
The accounting principles applied to the measurement and reporting of earnings and financial position is the historical cost basis.
Specific Accounting Policies
The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied:
a) Receivables
Receivables are stated at their estimated realisable value. All known losses are written off in the period in which it becomes apparent that the debts are not collectable.
b) Revenue
Goods and Services
Revenue comprised the amounts received and receivable for goods and services supplied to customers in the ordinary course of business.
Investment Income
Interest and rental 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.
c) Property, Plant and Equipment
All property, plant and equipment is initially recorded at cost less accumulated depreciation. The cost of purchased property, plant and equipment is the fair value of the consideration given to acquire the assets and the value of other directly attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended service.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 7
Gazette.govt.nz —
NZ Gazette 2008, No 7
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OtagoNet Joint Venture Financial Statements
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