✨ Financial Statements Notes
NEW ZEALAND GAZETTE
No. 139
TRANS POWER NEW ZEALAND LIMITED GROUP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 1995
(a) Revenue
Revenue shown in the Statement of Financial Performance comprises the amounts received and receivable by the Group for transmission services and lease revenue. Revenue is stated exclusive of Goods and Services Tax.
(b) Current Assets
Receivables are stated at their estimated net realisable value.
Stocks are valued at the lower of cost, calculated on the weighted average cost basis, or estimated net realisable value.
(c) Investments
Investments are recorded at net realisable value.
(d) Fixed Assets
Fixed assets are recorded at the most recent valuation, adjusted by subsequent additions, disposals and depreciation. Valuations are carried out each year by or under the guidance of independent experts, using the optimised deprival valuation methodology (ODV).
Under modified historical cost the annual revaluation for the year, reflecting the difference between the net carrying value of the assets and the ODV value, is recorded in the asset revaluation reserve. In arriving at the net carrying value any accumulated depreciation or infrastructure asset service potential adjustment is written back against the asset value.
The revaluation increment or decrement is transferred from the revaluation reserve to retained earnings on the disposal of an asset.
Capital work in progress is recorded at cost. For major capital works, finance costs are capitalised. Finance costs incurred during the period of time that is required to complete and prepare the fixed asset for its intended use are capitalised as part of the total cost of the major capital works. The finance costs capitalised are based on the actual cost directly attributable to the construction of the asset. Where this is not clearly identifiable, the Group’s weighted average cost of capital is used. Capital expenditure is defined as all expenditure incurred in the creation of a new asset, and any expenditure which results in a significant improvement in the operating capacity of an existing asset.
Revenue expenditure is defined as all expenditure which restores an asset to its original condition and all expenditure incurred in maintaining and operating the assets of the Company.
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VUW Te Waharoa —
NZ Gazette 1995, No 139
NZLII —
NZ Gazette 1995, No 139
✨ LLM interpretation of page content
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Notes to the Financial Statements for Trans Power New Zealand Limited
(continued from previous page)
🏗️ Infrastructure & Public WorksFinancial Statements, Accounting Policies, Revenue, Current Assets, Investments, Fixed Assets, Depreciation, Valuation, Capital Expenditure