New Zealand Gazette – 1999 – No. 125

Page 3000

✨ Financial Statements



3000 NEW ZEALAND GAZETTE No. 125

2.5 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (continued)

For the year ended 31 March 1999

Distribution Network System Assets

UnitedNetworks comprises the following reticulation assets:

  • Waitemata, Valley, Kinleith Networks
    Formerly Power New Zealand Ltd. The last revaluation carried was out by independent consultants, Coopers & Lybrand in March 1997.

  • Wellington Network
    Purchased from TransAlta Limited in January 1999. The last revaluation was carried out by independent consultants, Worley Consultants Limited and Ernst & Young in March 1997.

  • Tauranga, Rotorua, Taupo Networks
    Purchased from TrustPower Limited in February 1999. The last revaluation was carried out by independent consultants, Worley Consultants Limited and Price Waterhouse in March 1998.

  • Bay of Plenty Electricity Network
    The last revaluation was carried out by independent consultants, Coopers and Lybrand and Worley Consultants Limited in March 1997.

The Optimised Depreciated Replacement Cost (ODRC) valuations carried out for the Waitemata, Valley, Kinleith and Wellington networks in March 1997 were in accordance with the Handbook for Optimised Deprival Valuation of Electricity Line Businesses dated 23 June 1994. These valuations were revised in March 1998 to comply with the new standard lives in the Handbook dated 28 May 1998.

The Optimised Depreciated Replacement Cost (ODRC) valuations carried out for the Tauranga, Taupo and Rotorua networks in March 1998 were in accordance with the Handbook for Optimised Deprival Valuation of Electricity Line Businesses dated 28 May 1998.

UnitedNetworks has carried forward the balances of the last revaluations of the Waitemata, Valley, Kinleith, Wellington, Tauranga, Taupo and Rotorua networks and adjusted for additions, disposals and depreciation. The revised value as at 31 March 1999 is $1,018.3 million.

Bay of Plenty Electricity Limited has carried forward the balance of the last revaluation of its network and adjusted for additions, disposals and depreciation. The revised value as at 31 March 1999 is $64.5 million.

Total aggregated Distribution Network System Assets is $1,082.8 million.

Financial Instruments

The company has financial instruments with off-balance sheet risk for the primary purpose of reducing its exposure to fluctuations in interest rates and foreign exchange rates.

Financial instruments entered into as hedges of an underlying exposure are accounted for on the same basis as the underlying exposure. Financial instruments entered into with no underlying exposure are accounted for on a mark to market basis.

Depreciation

Depreciation of fixed assets, other than freehold land, has been charged at rates calculated to allocate on a straight-line basis either the assets' cost, or the valuation, less estimated residual value, over their estimated useful lives as follows:

(i) Freehold Buildings 40 – 100 years
(ii) Reticulation System 15 – 70 years
(iii) Plant, Vehicles and Equipment 2 – 10 years



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✨ LLM interpretation of page content

💰 Notes to Financial Statements for the year ended 31 March 1999 (continued from previous page)

💰 Finance & Revenue
Financial Statements, Accounting Policies, Special Purpose, General Accounting, Consolidation, Income Tax, Fixed Assets, Distribution Network System Assets, Financial Instruments, Depreciation