New Zealand Gazette – 1996 – No. 173

Page 4561

✨ Financial Statements Notes



29 NOVEMBER NEW ZEALAND GAZETTE 4561

            TRANS POWER NEW ZEALAND LIMITED GROUP

            NOTES TO THE FINANCIAL STATEMENTS
            FOR THE YEAR ENDED 30 JUNE 1996

  1. CURRENT LIABILITIES (cont.)

                                30 June 1996    30 June 1995
                            $000        $000

Reconciliation of provision for current tax payable:
Tax payable in the current year (refer Note 7) 32,131 21,878
Provisional tax payments made during the year (27,400) (22,812)
Under provision in prior years 14,362 1,566
Total provision for current tax payable 19,093 632

  1. DEFERRED MAINTENANCE

Balance of the provision at the
beginning of the year 3,872 4,400
Plus/(less) movement in the
provision during the year (3,872) 3,150
Less portion reclassified as a current liability - (3,678)
Balance of the provision at the end of the year - 3,872

Movement in the provision during the year
This provision was established in respect of remedial repair work envisaged to be required on the three HVDC submarine cables laid in 1991. This work is to rectify excessive wear and tear caused by the harsh environmental conditions in the Cook Strait, which was found to have seriously affected the three older cables. A Remote Operated Vehicle (ROV) survey, costing $4,789,000, was completed during the year. This has been charged against the total balance of the provision, including the portion of the provision previously reclassified as current liability of $3,678,000.

The results of the ROV survey indicate that the new cables were substantially unaffected by the environment over the period since they were laid. As no remedial work appears to be necessary the balance of the provision has been reduced to nil. This has resulted in a net credit to the Statement of Financial Performance of $2,761,000, which is included in asset operation and maintenance costs.

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✨ LLM interpretation of page content

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

🏭 Trade, Customs & Industry
5 November 1996
Financial Statements, Current Liabilities, Deferred Maintenance, Tax Payable, ROV Survey, Cook Strait, HVDC Submarine Cables