(1) In these regulations, unless the context otherwise requires,—

(2) A reference in these regulations to a numbered form is a reference to a form so numbered in Schedule 3.

(3) Where any expression used in these regulations is not defined in these regulations but is defined in the Act, that expression, unless the context otherwise requires, has, in these regulations, the meaning given to it by the Act.

(1) The Corporation must publicly disclose annual and half-yearly financial statements in respect of the Corporation's local loop business in New Zealand and other telecommunications businesses, as those businesses are defined in accordance with the avoidable cost allocation methodology set out in Part 2 of Schedule 1.

(2) The annual financial statements must be prepared within 3 months after the end of each financial year, for that financial year.

(3) The half-yearly financial statements must be prepared within 3 months after the first half of each financial year, for that half of the financial year.

(4) Financial statements (other than the financial performance measures) must—

• (a) Be prepared in accordance with generally accepted accounting practice; and

• (b) Separately identify with a monetary amount—

  • (i) The items listed in Part 3 of Schedule 1, other than items identified in that Part as not requiring separate identification with a monetary amount; and

  • (ii) Any items not included in Part 3 of Schedule 1 that comprise a material proportion of the cost, revenue, asset, or liability category in which they are classified; and

• (c) Contain all items of such a size, nature, or incidence that their disclosure is necessary for an understanding of the businesses; and

• (d) Be accompanied, in the case of financial statements relating to the 2000/2001 financial periods and later periods, by such information relating to financial statements as has previously been publicly disclosed in respect of the previous corresponding financial period, in a format that enables the most accurate available comparison between the current disclosure and the earlier disclosure; and

• (e) Reconcile with the accounts of the Corporation; and

• (f) Be prepared in accordance with the same accounting policies as the accounts of the Corporation.

(5) Financial performance measures must—

• (a) Be compiled in accordance with the requirements of regulation 5; and

• (b) Contain the information set out in Part 4 of Schedule 1.

(6) The first annual financial statements publicly disclosed by the Corporation under subclause (1) must be for the 6-month period from 1 January 2000 to 30 June 2000, but all subsequent annual disclosures under that subclause must be for the full financial year of the Corporation.

(1) The notes to the financial statements required to be publicly disclosed under regulation 3 must include the following information relating to material transactions between the local loop business and the other telecommunications businesses:

• (a) The identity of each entity and the nature of the relationship between the entities involved in the transactions; and

• (b) A detailed description of the good or service supplied by each entity in those transactions; and

• (c) A detailed description of the good or service received by each entity in the course of those transactions; and

• (d) The total price, unit price, quantity, and recorded revenue and expenditure amounts, as appropriate, of the transactions expressed in dollar terms in respect of each type of good or service; and

• (e) The period during which the good or service was supplied or received, as the case may be; and

• (f) The terms and frequency of payment for each good or service supplied; and

• (g) The total outstanding balances arising from all such transactions for each entity together with details of the terms of settlement for those balances.

(2) For the avoidance of doubt, the transactions referred to in subclause (1) include—

• (a) Transactions relating to interconnection; and

• (b) Transactions that take place at nil or other (including nominal) value.

(1) This regulation applies in respect of calculations made for the purposes of determining, in respect of any financial period, any of the financial performance measures required to be publicly disclosed under regulation 3.

(2) Calculations to which this regulation applies must—

• (a) Be made using all relevant information included in the financial statements (other than financial performance measures) prepared in respect of the relevant financial period; and

• (b) Be made so as to adjust for—

  • (i) The effect of any subvention payment; and

  • (ii) The effect of any revaluations; and

  • (iii) Where any revaluation of intangible assets has occured, the average total intangible assets; and

• (c) Be accompanied, in the case of financial performance measures for the 2000/2001 financial periods and later periods, by such information relating to financial performance measures as has previously been publicly disclosed in respect of the previous corresponding financial period, in a format that enables the most accurate available comparison between the current disclosure and the earlier disclosure; and

• (d) Be accompanied by the form set out in Part 5 of Schedule 1.

(3) In respect of the financial performance measures for the period from 1 January 2000 to 30 June 2000, that form must be completed using closing balances as at 30 June 2000 where average figures are required.

(1) If the financial statements referred to in regulation 5(2)(a) have been so prepared that, in respect of any local loop business asset or other telecommunications businesses asset (being a fixed asset), both of the following items, namely—

• (a) Depreciation on the asset; and

• (b) Expenditure that has the effect of maintaining the service potential of the asset,—

have been accounted for as an expense, then, subject to subclause (2), the information derived from those financial statements for the purposes of this regulation must be derived on the basis that not more than 1 of those expense items is so accounted for in respect of that asset.

(2) If, in respect of any fixed asset to which subclause (1) applies, there has been a loss of service potential during the relevant financial year, nothing in that subclause applies in respect of any depreciation on that asset to the extent that the depreciation is equal to the extent of that loss.

(1) Before 1 April 2000, the Corporation must publicly disclose, and include in the List of Charges, the prescribed terms and conditions of the standard contract for every prescribed service offered by the Corporation, including prescribed services offered by a subsidiary of the Corporation to another subsidiary of the Corporation.

(2) Within 30 days after the end of each quarter ending on the close of 31 March, 30 June, 30 September, and 31 December in each year, the Corporation must publicly disclose the following information relating to discounts:

• (a) The principles or guidelines applied by the Corporation in determining whether or not to allow a discount, and the maximum discount available to a customer; and

• (b) If a discount is allowed for the supply of a prescribed service of 10% or more of the standard contract price for the supply of that prescribed service,—

  • (i) The principles or guidelines applied by the Corporation in allowing that discount; and

  • (ii) The actual discount allowed; and

  • (iii) If the discount represents a variation in the terms and conditions of the standard contract for the prescribed service, those terms and conditions as varied; and

• (c) If, pursuant to a contract with any person, a number of telecommunications services are being supplied to that person, and—

  • (i) The services supplied include a prescribed service and other services; and

  • (ii) A discount of 10% or more is applied in relation to the aggregate price of all the services,—

  the information to be publicly disclosed under this subclause must also state that those services are being supplied at a discount, the amount of the discount, and that the discount applied to services other than prescribed services.

(3) The Corporation is not required under this regulation to publicly disclose information relating to the supply of a prescribed service to an employee of the Corporation or of a subsidiary of the Corporation if the service is supplied as part of the terms and conditions of that person's employment.

Within 15 working days of entering into an interconnection agreement, the Corporation must publicly disclose the full text of that contract, excluding details relating to the location of physical links for service delivery between networks.

(1) The Corporation must publicly disclose any modifications made to any interconnection agreement or to any prescribed terms and conditions of any standard contract that is publicly disclosed under regulation 7(1).

(2) The public disclosure requirement applies not later than 1 month after those modifications take effect.

(3) The disclosure must identify in each case the particular interconnection agreement or standard contract that has been modified.

(1) At the same time the Corporation publicly discloses the financial statements required by regulation 3, the Corporation must publicly disclose the following information with respect to its Kiwi Share Obligations:

• (a) The losses incurred in complying with those obligations, including—

  • (i) The amount of the losses attributable to each component of the ordinary residential telephone service to which the Kiwi Share Obligations apply; and

  • (ii) For each of those components, a summary of the calculations made in determining the amount of the losses; and

  • (iii) For each of those components, the amount of the losses attributable to individual customer groups; and

• (b) The means by which any losses from the performance of Kiwi Share Obligations are recovered, including—

  • (i) The sources from which the Corporation recovered those losses; and

  • (ii) The amounts that the Corporation recovered from each of those sources; and

  • (iii) The components of any charges from which the Corporation recovered those losses.

(2) In calculating the losses incurred from the performance of the Kiwi Share Obligations, the Corporation must follow the methodology specified in Schedule 2.

(1) At the same time the Corporation publicly discloses the financial statements required under regulation 3, the Corporation must publicly disclose the full methodologies used to—

• (a) Prepare the financial statements required by regulation 3; and

• (b) Calculate the losses from the Kiwi Share Obligations referred to in regulation 10.

(2) The methodologies publicly disclosed under subclause (1) must include—

• (a) A description of any models used; and

• (b) All assumptions and estimates necessary to provide assurance as to the robustness of the calculations made in preparing the financial statements and calculating the losses; and

• (c) A description of all customer groups used.

(3) Where the Corporation has made a change to a methodology, the Corporation must publicly disclose the reasons for that change and the financial impact of that change.

(4) Where the Corporation has adopted a different methodology from the methodology previously publicly disclosed under subclause (1), the Corporation must publicly disclose the reasons for that different methodology and the financial impact of that different methodology.

(1) With respect to information that the Corporation is required to publicly disclose, the Corporation must comply with the following rules:

• (a) Information relating to any contract must be publicly disclosed for as long as that contract remains in force:

• (b) Information that is publicly disclosed under regulation 3 or regulation 10 must be publicly disclosed for a period of at least 3 years:

• (c) Information relating to any methodology that is publicly disclosed under regulation 11 must be publicly disclosed for a period of at least 1 year or until that methodology is no longer used by the Corporation, whichever is the longer:

• (d) Data, calculation models, and associated documentation used to prepare any information that the Corporation must publicly disclose must be retained by the Corporation for a period of at least 7 years.

(2) A period runs from the time the information is first required to be publicly disclosed by the Corporation in accordance with these regulations.

For the purposes of section 5D of the Act,—

• (a) All statements, reports, agreements, particulars, and information supplied to the chief executive of the Ministry of Economic Development under subsection (1)(b) or (c) of that section must be verified by statutory declaration in form 1:

• (b) The statutory declaration referred to in paragraph (a) of this clause must be made by a director or officer of the Corporation.

(1) At the same time the Corporation publicly discloses the annual financial statements required under regulation 3(1), an independent auditor must provide a signed auditor's report in form 2 with respect to those statements.

(2) The auditor must give a qualified audit report if, in the auditor's opinion, the financial statements—

• (a) Fail to comply with these regulations or generally accepted accounting practice; or

• (b) Fail to give a true and fair view of the matters to which they relate (having regard to any information or explanations that may have been added by the directors of the Corporation under section 11(2) or section 14(2) of the Financial Reporting Act 1993),—

and the qualified audit report must explain the respects in which the statements so fail.

(3) An independent auditor must certify, by certificate in form 3, the losses attributable to the Kiwi Share Obligations required by regulation 10 to be publicly disclosed, within 3 months after the end of each financial year.

The following regulations are consequentially revoked:

• (a) The Telecommunications (Disclosure) Regulations 1990 (SR 1990/120):

• (b) The Telecommunications (Disclosure) Regulations 1990, Amendment No 1 (SR 1993/380).

(1) Any matter that was required to be published or made available under the Telecommunications (Disclosure) Regulations 1990 before the commencement of these regulations must be published or made available as if those regulations had not been revoked.

(2) The Telecommunications (Disclosure) Regulations 1990 continue to apply to information published or made available under those regulations as if they had not been revoked.