New Zealand Gazette – 1999 – No. 147

Page 3515

✨ Financial Statements Notes



11 OCTOBER NEW ZEALAND GAZETTE 3515

Notes to and forming part of the financial statements for the year ended 31 March 1999

1. STATEMENT OF ACCOUNTING POLICIES (CONTINUED)

h) Foreign Currencies

Transactions in foreign currencies are converted at the New Zealand rate of exchange ruling at the date of the transaction. Short-term transactions covered by forward exchange contracts are measured and reported at the forward rates specified in those contracts.

At balance date foreign currency monetary assets and liabilities are translated to NZ dollars at the balance date exchange rate and exchange variations arising from these translations are included in the statement of financial performance.

The exchange differences on hedging transactions undertaken to establish the price of particular sales or purchases, together with any costs associated with the hedge transactions, are deferred and included in the measurement of the purchase or sale transaction.

Changes in Accounting Policies

All policies have been applied on bases consistent with those used in previous years with one exception, the change of the debt equity ratio in the Lines business to reflect commercial reality. This year the ACAM methodology has been used for allocating debt in accordance with the Electricity (Information Disclosure) handbook.

Previously the financial statements were prepared on the basis of a notional 50-50 debt equity ratio in the Lines business. The implementation of this new policy had the following impact on this year’s financial statements: Equity increased by $260 million, non current liabilities decreased by $260 million.

1999 1998
$000 $000

2. LINE ACTIVITIES

Expenditure

Payment by "Line" business to "Other" for:

  • Meter data | 3,114 | - |
  • Other goods and services | 35,477 | - |

Line expenses:

  • Transmission charges | 55,936 | 55,100 |
  • Depreciation on system fixed assets | 19,923 | - |
  • Other depreciation | 38 | - |
  • Total depreciation | 19,961 | 18,132 |
  • Employee salaries and redundancies | 8,369 | - |
  • Asset maintenance services | 19,784 | 24,942 |
  • Corporate and administration | 1,411 | - |
  • Human resource expenses | 1,289 | - |
  • Marketing/advertising | 3,531 | - |
  • Consultancy and legal | 3,105 | - |
  • Other expenditure | 23,687 | 155,502 |
  • Total expenditure | 175,664 | 253,676 |

Earnings before interest and tax | 61,389 | (29,317) |

Interest expense | 28,440 | 35,546 |

Taxation expense (benefit) | 10,225 | (22,275) |

Net profit (loss) after tax | 22,724 | (42,588) |



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✨ LLM interpretation of page content

🏭 Financial Performance of Vector Limited for the year ended 31 March 1999 (continued from previous page)

🏭 Trade, Customs & Industry
Financial Performance, Revenue, Surplus, Deficit, Tax, Electricity Lines Business