The Annual Reports of New Zealand Electricity Companies: Assessing Quality

Abstract

Corporatisation of the New Zealand electricity industry during the 1990s increased the need for improved accountability. The publication of annual reports is one of the prime ways in which organisations meet their accountability obligations. This paper describes the development of a disclosure index from a public accountability perspective and reports the results of its application to the 1999 annual reports of the 33 electricity retail and distribution companies. The index was developed with the support of a panel representing 15 stakeholder groups. It is designed to assess the comprehensiveness (both in extent and quality) of annual report disclosures and incorporates a best‐practice model of annual reporting. Key areas of inadequate disclosure relate to performance measures (financial and non‐financial), segmental information, asset valuation details, and the cost of electricity purchased / generated. Improved disclosure to meet best‐practice guidelines would contribute to improved communication between companies and stakeholders.

Citation

Hooks, J., Coy, D. and Davey, H. (2001), "The Annual Reports of New Zealand Electricity Companies: Assessing Quality", Pacific Accounting Review, Vol. 13 No. 2, pp. 35-69. https://doi.org/10.1108/eb037960