✨ Financial Statements Notes
29 NOVEMBER NEW ZEALAND GAZETTE 4549
TRANS POWER NEW ZEALAND LIMITED GROUP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 1996
(i) Leased Assets
The Group leases certain plant, equipment, land, and buildings.
Finance leases effectively transfer to the entity substantially all of the risks and benefits incidental to the ownership of the leased item. Assets acquired by means of a finance lease are capitalised at the lower of the fair value of the asset or the present value of the minimum lease payments. Leased assets are depreciated over their economic lives. A corresponding liability is also established at the inception of each lease and each lease payment is allocated between the liability and finance costs.
Under operating leases all the risks and benefits of ownership are effectively retained by the lessor. Operating lease payments are representative of the pattern of benefits derived from the leased assets and are accordingly recognised in the Statement of Financial Performance as expenses, in the period in which they are incurred.
(j) Statement of Cash Flows
The following are the definitions of the terms used in the Statement of Cash Flows:
(i) Cash means coins, notes and demand deposits. Cash includes liabilities which are the negative form of the above, such as the bank overdraft.
(ii) Operating activities comprise the transmission of bulk electricity and related support, maintenance, administration and interest costs.
(iii) Investing activities comprise the purchase, holding and disposal of fixed assets and investments. Capitalised interest on capital work in progress is also included in investing activities.
(iv) Financing activities include changes in equity and borrowings, and dividends paid on equity. Cash flows arising from short term loans are disclosed as a net cash movement due to the volume of transactions involved.
Page 10
Next Page →
PDF embedding disabled (Crown copyright)
View this page online at:
VUW Te Waharoa —
NZ Gazette 1996, No 173
NZLII —
NZ Gazette 1996, No 173
✨ LLM interpretation of page content
🏭
Notes to the Financial Statements for Trans Power New Zealand Limited
(continued from previous page)
🏭 Trade, Customs & Industry5 November 1996
Financial Statements, Accounting Policies, Leased Assets, Finance Leases, Operating Leases, Statement of Cash Flows, Cash, Operating Activities, Investing Activities, Financing Activities