✨ Financial Statements Notes
2502 NEW ZEALAND GAZETTE No. 107
WAITOMO ENERGY SERVICES LIMITED
Line Business Activity
Notes to the Financial Statements
For the Year Ending 31st March 1997
The distribution system has been revalued to its optimised depreciated value by an electrical engineer and audited by Coopers & Lybrand, with the exception of
- 11kV and low voltage distribution lines which have been valued at 70% of optimised deprival value, (odv).
- Meters and Load Control Relays are included at cost.
Increases in valuations have been transferred to the Revaluation Reserve in Equity.
Motor Vehicles, Plant and Equipment and all other assets have been valued at cost less accumulated depreciation.
(c) Staff Leave and Gratuity Payments
Provision is made in respect of the Company’s liability for annual leave and gratuity payments. At the balance date retiring gratuities have been accrued in respect of all employees with more than 10 years service with the Company and aged 45 years or over. Gratuity payment is paid on the retirement of an employee who has at the time of retirement been currently continuously employed by the Company for a period of at least 10 years.
(d) Depreciation
Depreciation is provided on either a straight line or a diminishing value basis on all fixed assets other than freehold land and perpetually renewable distribution assets, at rates calculated to allocate the assets’ cost or valuation less estimated residual value, over their estimated useful life.
Major depreciation rates and methods:
Buildings and generation headworks 40-100 years Straight Line
Generation Plant 10% Diminishing Value
Motor Vehicles, plant & equipment 10% to 50% Diminishing Value
Network plant & equipment 20 - 50 years Straight Line
Land is not depreciated.
Infrastructural accounting has been adopted for those parts of the distribution asset that are perpetually renewed. This means:
(i) The asset is not depreciated
(ii) Asset replacements are expensed in the year of replacement, unless the replacement of any individual asset materially increases the network odv value in which case the asset is capitalised to the extent of the increase in odv value.
(iii) Any reductions in odv value of the network asset due to inadequate maintenance are expensed in the year of inadequate maintenance.
Other components which are separately identifiable and have a finite life e.g. 33kV substation transformers are depreciated.
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VUW Te Waharoa —
NZ Gazette 1997, No 107
NZLII —
NZ Gazette 1997, No 107
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Notes to the Financial Statements for Waitomo Energy Services Limited
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🏭 Trade, Customs & IndustryFinancial Statements, Business Activity, Statutory Base, Accounting Policies, Debtors, Fixed Assets, Land, Buildings, Motor Vehicles, Plant and Equipment, Distribution System, Generation Assets