New Zealand Gazette – 2000 – No. 162

Page 4193

✨ Financial Statements Notes



4 DECEMBER NEW ZEALAND GAZETTE 4193

TRANSPower NEW ZEALAND LIMITED LINES BUSINESS

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2000

(h) Depreciation

Depreciation of non-infrastructure fixed assets is calculated using the straight line
method to allocate the cost or valuation of the fixed assets over their expected
useful lives, after due allowance for their expected residual value. The estimated
economic lives are as follows:

Freehold buildings 20-25 years
Substations 25-55 years
HVDC link 30 years
HVDC leased assets 30 years
Communications 10-25 years
Administration assets 3-10 years

(i) Leased Assets

The Transpower Lines Business leases certain plant, equipment, land and buildings.

Finance leases effectively transfer substantially all of the risks and benefits incidental
to the ownership of the leased item to the entity. Assets acquired by means of a finance
lease are capitalised at the lower of the fair value of the asset or the present value of the
minimum lease payments. Leased assets are depreciated over their economic lives. A
corresponding liability is also established at the inception of each lease and each lease
payment is allocated between the liability and finance costs.

Under operating leases all the risks and benefits of ownership are effectively
retained by the lessor. Operating lease payments are representative of the pattern
of benefits derived from the leased assets and are accordingly recognised in the
Statements of Financial Performance as expenses, in the period in which they
are incurred.

(j) Statements of Cash Flows

The following are the definitions of the terms used in the Statements of Cash
Flows:

(i) Cash and bank means coins, notes and demand deposits. Cash includes
liabilities which are the negative form of the above, such as the bank
overdraft.

(ii) Operating activities comprise the transmission of bulk electricity,
and the related support, maintenance, administration and interest costs.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2000, No 162


Gazette.govt.nz — PDF NZ Gazette 2000, No 162




✨ LLM interpretation of page content

🏭 Transpower New Zealand Limited Statement of Cashflows (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Accounting Policies, Transpower, 2000, Depreciation, Leased Assets, Cash Flows