New Zealand Gazette – 1995 – No. 139

Page 4536

✨ Financial Statements Notes



4536 No. 139

NEW ZEALAND GAZETTE

TRANS POWER NEW ZEALAND LIMITED GROUP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 1995

If, in any year, the level of infrastructure expenditure is insufficient to preserve the service potential of the infrastructure asset, the net book value of the infrastructure asset is reduced and the Statement of Financial Performance charged with the amount of this shortfall (referred to as the Infrastructure asset service potential adjustment). Expenditure in subsequent periods to redress this shortfall is regarded as backlog maintenance and the net book value of the infrastructure asset is increased. Backlog maintenance is expenditure required to bring the infrastructure asset to the requisite level of service potential.

(f) Depreciation

Depreciation of non infrastructure fixed assets is calculated using the straight line method to allocate the carrying value over the useful remaining life of the assets, after due allowance for expected residual value. The remaining useful lives of assets are reviewed periodically and where necessary are adjusted. The annual depreciation rates shown below are calculated on a weighted average basis for each classification of asset.

1995* 1994
Freehold buildings 2.4 percent 4.6 percent
Substations 2.4 percent 4.2 percent
HVDC link 2.8 percent 3.5 percent
HVDC leased asset 3.6 percent 3.6 percent
Communications 11.6 percent 12.4 percent
Minor assets 14.4 percent 15.9 percent
  • Depreciation rates have changed in the current year as the result of adopting the remaining lives used in the ODV. The effect of this change on the calculation of the depreciation charge is detailed in Note 4.

(g) Leased Assets

The Group leases certain plant, equipment, land, and buildings.

Finance leases, which effectively transfer to the entity substantially all of the risks and benefits incident to ownership of the leased item, are capitalised at the lower of the fair value of the asset and the present value of the minimum lease payments. The leased assets and corresponding liabilities are disclosed separately and the leased assets are depreciated over their economic lives.



Next Page →

PDF embedding disabled (Crown copyright)

View this page online at:


VUW Te Waharoa — PDF NZ Gazette 1995, No 139


NZLII — PDF NZ Gazette 1995, No 139




✨ LLM interpretation of page content

🏗️ Notes to the Financial Statements for Trans Power New Zealand Limited (continued from previous page)

🏗️ Infrastructure & Public Works
Financial Statements, Accounting Policies, Revenue, Current Assets, Investments, Fixed Assets, Depreciation, Valuation, Capital Expenditure, Infrastructure Asset, Asset Management Plan, Operating Capability, National Grid