✨ Financial Statements Notes
29 NOVEMBER
NEW ZEALAND GAZETTE
TRANS POWER NEW ZEALAND LIMITED GROUP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 1996
Upon the disposal or write off of an asset the revaluation increment or decrement relevant to that asset is transferred from the revaluation reserve to retained earnings.
Capital Work in Progress
Capital work in progress is recorded at cost. Cost is determined by including all costs directly associated with bringing the fixed assets to their location and condition. Finance costs incurred during the period of time that is required to complete and prepare the fixed asset for its intended use are capitalised for all projects having a cost in excess of one million dollars as part of the total cost for capital work in progress.
The finance costs capitalised are based on the actual costs directly attributable to the construction of the asset. Where this is not clearly identifiable, the Group’s weighted average cost of capital is used.
Assets are transferred from capital work in progress to fixed assets as they become operational and available for use.
(g) Infrastructure Asset
The infrastructure accounting methodology is applied to the infrastructure asset. The infrastructure asset consists of the individual asset components that form the network of transmission lines comprising the National Grid. These individual components are regarded together as a single asset. All other assets are classified as non infrastructure assets.
The philosophies, standards, practices and expenditures for maintaining the operating capability of the Group’s assets, including the infrastructure asset, are documented in the annual Asset Management Plan (AMP). It is the Group’s intention to maintain the operating capability of the transmission line network into the foreseeable future.
Operating capability refers to the output of service of the infrastructure asset at a point in time and is determined by reference to attributes such as physical output capacity, associated operating costs and quality of output.
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VUW Te Waharoa —
NZ Gazette 1996, No 173
NZLII —
NZ Gazette 1996, No 173
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Notes to the Financial Statements for Trans Power New Zealand Limited
(continued from previous page)
🏭 Trade, Customs & Industry5 November 1996
Financial Statements, Accounting Policies, Revenue, GST, Current Assets, Investments, Fixed Assets, Modified Historical Cost Measurement