2 0 1 5 |
WE L ANNUA L REPOR T
38
Notes to the consolidated financial statements
For the year ended 31 March 2015
1. General information
WEL Networks Limited is a profit-oriented company incorporated in New Zealand under the Companies Act 1993. The Group consists of
WEL Networks Limited (‘the Company’or ‘Parent’) and its subsidiaries (together ‘the Group’). The Group is an electricity network business,
delivering energy to customers in theWaikato Region and is the contracting company associated with the construction of the Government
Ultrafast Fibre roll out programme in theWaikato, Tauranga and Taranaki areas.
The Company is a limited liability company incorporated in New Zealand. The address of its registered office is 114 Maui Street, Hamilton.
These consolidated financial statements have been approved for issue by the Board of Directors on 29 May 2015. Once issued the entity’s
owners do not have the power to amend these financial statements.
The structure of the Group consists of:
Operating subsidiaries
Activity
Interest
2015
Interest
2014
Waikato Networks Limited
Construction of fibre network
85%
85%
Non-operating entities
WEL Electricity Limited
WEL Energy Group Limited
Waikato Electricity Limited
WEL Power Limited
WEL Generation Limited
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated.
The following new standards and amendments to standards were applied during the period:
Amendments to the XRB A1 Accounting standards framework: Omnibus amendments (Legislative update)
Amendments to ensure the standard appropriately reflects the legislative changes.
External reporting board standard A2 meaning of specified statutory size thresholds
The standard sets out the meaning of the following specified terms which are required under legislation to be defined in NZ IFRS:
Total assets; Total revenue; Total operating payments and Total operating expenditure.
Amendments to accounting standards: Omnibus amendments (Legislative update)
Amendments to ensure the standards appropriately reflect the legislative changes. The amendment impacts various accounting standards,
including NZ IFRS 7 and the definition of a deposit taker, NZ IAS 1 and references to the Financial Reporting Act 1993.
Amendment to IAS 32, ‘Financial instruments: Presentation’, on asset and liability offsetting
These amendments are to the application guidance in IAS 32, ‘Financial instruments: Presentation’, and clarify some of the requirements
for offsetting financial assets and financial liabilities on the balance sheet.
Standards, amendments and interpretations to existing standards that are not yet effective
Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for the Group’s
accounting periods beginning on or after 1 January 2012 or later periods but which the Group has not early adopted and is not expected to
result in a material impact on the Group’s or Company’s financial statements. The following new standards are applicable to the Group:
NZ IFRS 15: Revenue from contracts with customers
(Effective date: periods beginning on or after 1 January 2017)
NZ IFRS 15, ‘Revenue from contracts with customers’deals with revenue recognition and establishes principles for reporting
useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising
from an entity’s contracts with customers. Revenue is recognised when a customer obtains control of a good or service and thus has the
ability to direct the use and obtain the benefits from the good or service. The standard replaces NZ IAS 18 ‘Revenue’and NZ IAS 11
‘Construction contracts’and related interpretations. The standard is effective for annual periods beginning on or after 1 January 2017 and
earlier application is permitted. The Group intends to adopt NZ IFRS 15 on its effective date.This standard is not expected to significantly
impact the Group.
