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notes to the financial Statements
for the year ended 31 March 2012
1. Statement of compliance
The Lines Company Limited (the “Company”) is a profit oriented, limited liability company incorporated in New
Zealand and registered under the Companies Act 1993.
The address of its registered office is King Street, East, Te Kuiti and its principal activities are substantially
carried out in the greater King Country region of New Zealand. The principal activities of the Company and
its subsidiaries (the “Group”) are the conveyance of electricity through its distribution network, supply of
metering and relay equipment, electrical contracting and electricity generation.
The Group is a reporting entity for the purposes of the Financial Reporting Act 1993 and its financial
statements comply with that Act. The financial statements have been prepared in accordance with Generally
Accepted Accounting Practice in New Zealand (NZ GAAP). They comply with the New Zealand Equivalents to
International Financial Reporting Standards (NZ IFRS), International Financial Reporting Standards (IFRS) and
other applicable financial reporting standards as appropriate for profit-oriented entities.
The financial statements were authorised for issue by the Directors on 2nd July 2012.
Basis of preparation
The financial statements have been prepared on the historical cost basis, except for the revaluation of certain
non-current assets and financial instruments.
Cost is based on the fair value of the consideration given in exchange for assets.
The financial statements are presented in New Zealand dollars ($NZD), which is both the Group’s and Parent’s
functional and presentation currency. All financial information presented in New Zealand dollars has been
rounded to the nearest thousand dollars.
The accounting policies set out below have been applied consistently to all periods presented in these financial
statements and have been applied consistently by Group entities.
2. Significant Accounting Policies
a) Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company (its subsidiaries). Control exists when the Group has the power to govern the
financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control,
potential voting rights that are presently exercisable are taken into account. The financial statements of
subsidiaries are included in the consolidated financial statements from the date that control commences until
the date that control ceases. Consistent accounting policies are employed in the preparation and presentation
of the consolidated financial statements.
All intra-group transactions, balances, income and expenses are eliminated on consolidation. The results of
subsidiaries acquired or disposed of during the year are included in profit or loss from the effective date of
acquisition or disposal, as appropriate. Investments in subsidiaries are recorded at cost in the Parent Company’s
financial statements.
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