New Zealand Gazette – 1998 – No. 146

Page 3522

✨ Financial Statements Notes



3522 NEW ZEALAND GAZETTE No. 146

Change in Accounting Policy

In previous years generation assets and land and buildings have been recorded at cost. These classes of assets have been revalued for the first time to their market value as at 31 March 1998 as assessed by independent qualified valuers. This has resulted in an increase in their value and the value of the corresponding revaluation reserve of $18,279,000. This change has not affected the result.

(e) Depreciation

Depreciation is provided on all fixed assets, other than freehold land, at rates calculated to allocate the assets cost or valuation over their estimated useful life.

Depreciation is charged as follows:

  • Buildings 2% straight line
  • Dams, Headworks & Canals 1% straight line
  • Generation Plant 2.5% straight line
  • Reticulation Network 1.75-3.33% straight line
  • Motor Vehicles 20% straight line
  • Plant & Equipment 10-33% straight line

Gains and losses on disposal of fixed assets are taken into account in determining the operating result for the period.

(f) Investments

Investments are initially recorded at cost.

Investments in subsidiaries are revalued to their underlying net asset value in the books of the holding company as at balance date. The revaluation is taken directly to revaluation reserve.

The investment in the Tauranga Joint Generation Committee trading as Kaimai Hydropower has been equity accounted until 31 October 1997 the date on which a 100% interest was acquired. Income received from Kaimai Hydropower was recognised by way of a rebate deducted from electricity purchases until 31 October 1997 after which the result was fully consolidated.

Change in Accounting Policy

In previous years investments in subsidiaries have been recorded at cost. This is the first year in which these investments have been revalued to their underlying net asset value as at balance date. This has resulted in an increase in their value and the value of the corresponding revaluation reserve of $36,551,000. This change has not affected the result.

(g) Revenue Recognition

Revenues from electricity sales include an accrual for units sold but not billed at balance date.



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🏭 Notes to the Financial Statements for TrustPower Limited (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Accounting Policies, Consolidation, Goodwill, GST, Fixed Assets, TrustPower