✨ Financial Statements Notes
28 AUGUST NEW ZEALAND GAZETTE 2791
2.5 UnitedNetworks Limited
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS (continued)
For the year ended 31 March 2000
Income Tax
The company adopts the liability method of accounting whereby the income tax expense shown in the statement of financial performance is the estimated total liability relating to the income for the period. Deferred taxation is accounted for in respect of items relating to the Statement of Financial Performance, following the liability method, on the comprehensive basis. Where the revalued assets are intended to be held long term, the deferred taxation liability relating to the revaluation, arising from depreciation claimed for taxation purposes, is not expected to crystallise in the foreseeable future. Accordingly, the taxation liability, which would arise if the revalued assets were disposed of at valuation, has not been recognised. The taxation effect of the timing difference not recognised is disclosed in note 4.
Fixed Assets Other Than Distribution Network System Assets
All fixed assets are initially recorded at cost.
Distribution Network System Assets
The Distribution Network System Assets have been revalued to their ODV valuation of $1,005.3 million as at 31 March 2000.
The methodology adopts a three-step process. Firstly, an asset based valuation – the Optimised Depreciated Replacement Cost (ODRC) value is determined. Secondly, the Economic Value (EV) is established through a process of sustainability checking. Finally, the ODV is determined as the minimum of the ODRC and the EV.
The company engaged independent valuers to undertake the ODV valuation, which appears in the Statement of Financial Position and the notes thereto.
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.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 111
Gazette.govt.nz —
NZ Gazette 2000, No 111
✨ LLM interpretation of page content
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Notes to Financial Statements of UnitedNetworks Limited
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial, Statements, Notes, Accounting Policies, UnitedNetworks Limited, Income Tax, Fixed Assets, Distribution Network System Assets, Financial Instruments