New Zealand Gazette – 1993 – No. 94

Page 1781

✨ Financial Statements



29 JUNE NEW ZEALAND GAZETTE 1781

TELECOM WELLINGTON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

(CONTINUED)

9 FIXED ASSETS (Continued)

At 31 March 1993 the net book value of freehold land and buildings exceeded the aggregate of the latest available government valuations, together with the cost of subsequent additions (excluding properties designated for disposal). Telecom Wellington’s properties consist primarily of special purpose network buildings. The economic value to Telecom Wellington of these network buildings is not fully reflected in government valuations.

Included in telecommunications equipment, at 31 March 1993 and 31 March 1992 respectively, is equipment (principally customer premises equipment) leased to customers under operating leases with a cost of $101.3 million and $101.0 million, together with accumulated depreciation of $85.2 million and $79.1 million.

During the year ended 31 March 1993, the Company entered into a sale and leaseback of telecommunications equipment with a third party. At 31 March 1993, assets capitalised under finance leases associated with this transaction had a cost of $4.8 million and accumulated depreciation of $0.4 million.

During the year to 31 March 1993 there were reclassifications from other fixed assets of tools and plant, and fittings to telecommunications equipment and buildings respectively. Other fixed assets now include vehicles, office equipment, furniture and computer equipment.

LAND CLAIMS

Under the Treaty of Waitangi Act 1975, all interests in land included in the assets purchased from the Crown may be subject to claims to the Waitangi Tribunal, which has the power to recommend in appropriate circumstances, with binding effect, that the land be resumed by the Crown in order that it be returned to Maori claimants. In the event that land is resumed by the Crown, compensation will be paid to Telecom under the provisions of the Public Works Act 1981. If this is insufficient to cover the loss, certain additional compensation is payable under the provisions of the Sale and Purchase Agreement between Telecom and the Crown.

Under the State Owned Enterprises Act 1986, the Governor General of New Zealand may if satisfied that any land or interest in land held by Telecom is Wahi Tapu (being land of special spiritual, cultural or historical tribal significance), may declare by Order in Council that the land be resumed by the Crown, with compensation payable to Telecom under the provisions of the Public Works Act 1981.

Telecom would expect to negotiate with the new Maori owners for continued occupancy rights of any sites resumed by the Crown.

10 PROVISION FOR RESTRUCTURING COSTS

1993 1992
$000’s $000’s
Balance at beginning of year - -
Additions charged against earnings in year (Note 2) 85,608 -
Utilised in year (32,286) -
Balance at end of year 53,322 -

The amount utilised in the year ended 31 March 1993 includes redundancy costs of approximately $0.6 million (incurred in the fourth quarter) and property and asset writedowns of approximately $31.7 million.



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✨ LLM interpretation of page content

🏭 Financial Statements under Telecommunications (Disclosure) Regulations 1990 (continued from previous page)

🏭 Trade, Customs & Industry
Telecommunications, Financial Statements, Fixed Assets, Land Claims, Restructuring Costs, Treaty of Waitangi Act 1975, State Owned Enterprises Act 1986