General Accounting Policies The general policies adoped in the preparation of these financial statements are: Unless otherwise stated, the measurement base adopted is historical cost. Reliance is placed on the assumption that the company is a going concern. Accrual accounting is used to match revenues with related expenses. Special Purpose Financial Statements These financial statements have been prepared for the purpose of complying with the requirements of the Electricity (Information Disclosure) Regulations 1994. These financial statements relate to the company's line business incorporating the conveyance of electricity, ownership of works for conveyance of electricity and provision of line function and street lighting services. As this is the first year that the regulations have been in effect, comparative information is not available and therefore no comparative information has been prepared. Specific Accounting Policies Specific accounting policies which materially affect the measurement of profit and financial position which have been consistency applied, are: (a) Revenue Revenue shown in the operating statement relates to the provision of transmission services. (b) Expenditure Expenditure shown in the operating statement is derived as follows: Transmission charges, employee remuneration, administration and operating expenses are directly attributable to the line business. Maintenance is provided by the company's contracting group and charged at market rates to the line business group. Indirect costs, with the exception of unallocatable overheads, are charged on an activity basis to the line business. Unallacatable overheads are charged to the line business on a basis of staff numbers and asset value. A share of the total company's subvention payment has been allocated to the line business based upon its proportion of total company contribution to profit.