✨ Financial Statements
27 NOVEMBER 2009 NEW ZEALAND GAZETTE, No. 172 4159
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
1. Statement of Accounting Policies
Reporting Entity and Statutory Base
These financial statements are for the lines business of Transpower New Zealand Limited Lines Business (the Lines Business). The financial statements are in New Zealand dollars.
Nature of Operations
Transpower is the owner and operator of New Zealand’s national electricity grid. Transpower is not a public benefit entity for the purposes of NZ IAS 1 "Presentation of Financial Statements".
Basis of Preparation
The financial statements are presented in accordance with the State-Owned Enterprises Act 1986, the Financial Reporting Act 1993 and the Electricity Information Disclosure Requirements 2004. The Financial Reporting Act 1993 requires compliance with generally accepted accounting practice (GAAP) in New Zealand.
The financial statements comply with New Zealand Equivalents to International Financial Reporting Standards. The financial statements comply with International Financial Reporting Standards (IFRS).
The Electricity Information Disclosure Handbook has been followed in the preparation of these financial statements.
The avoidable cost allocation methodology (ACAM) is used for allocating costs and assets and liabilities between the Lines business and Other businesses.
Measurement Basis
The measurement basis adopted in the preparation of these financial statements is historical cost except as modified by certain investments, held for sale assets, investment property, financial assets and financial liabilities as identified in specific accounting policies below.
Specific Accounting Policies
a) Basis of Consolidation
The Transpower Lines Business financial statements consolidate the financial statements of subsidiaries which undertake lines business activities using the purchase method. All significant intercompany accounts and transactions are eliminated on consolidation.
b) Goodwill
Goodwill, representing the excess of the cost of acquisition over the fair value of the identifiable assets, liabilities and contingent liabilities acquired, is recognised as an asset and not amortised, but tested for impairment annually. Any impairment is recognised immediately in the income statement and is not subsequently reversed.
c) Revenue
The Transpower Lines Business recognises revenue as it provides services or delivers products to customers. A significant stream of revenue that is received up-front but deferred over the service period is certain "new investment agreements".
New investment agreements are agreements between the Transpower Lines Business and customers regarding the building of certain customer required grid connection assets. New investment agreement revenue is recognised over the contract period.
Due to the service periods, in relation to above items, being greater than one year, revenue is shown on a yield to maturity basis gross of an inferred interest expense.
Next Page →
NZ Gazette 2009, No 172
✨ LLM interpretation of page content
🏭
Transpower New Zealand Limited Accounting Policies
(continued from previous page)
🏭 Trade, Customs & IndustryAccounting Policies, Financial Statements, Transpower, Electricity, Revenue, Goodwill, Consolidation