✨ Financial Statements
VECTOR Limited
Electricity Lines Business
Notes to the Financial Statements
For the year ended 31 March 2001
| 2001 | 2000 | |
|---|---|---|
| $000 | $000 |
14. FIXED ASSETS (CONTINUED)
ODV valuation
- Balance at beginning of year: 707,582 | 710,139
- Movement in net book value: 158,350 | (2,557)
- Devaluation: (11,713) | -
- Balance at end of year: 854,219 | 707,582
The latest Optimised Deprival Value (ODV) valuation was carried out as at 31 March 2001 and was prepared in accordance with the 4th edition of the Ministry of Commerce Handbook (October 2000) by Meritec Limited consulting engineers. Revaluations are carried out at least every three years in accordance with accounting policy. The previous valuation was carried out as at 31 March 1999.
As indicated in the accounting policies finance costs are capitalised to fixed assets while under construction. During the year $4.6 million (2000: $2.9 million) of finance costs were capitalised.
15. RECEIVABLES AND PREPAYMENTS
-
Accounts receivable: 33,792 | 9,809
-
Provision for doubtful debts: (120) | (273)
Net: 33,672 | 9,536
-
Other receivables: - | 317
-
Other current assets: 1,775 | 1,653
Total: 35,447 | 11,506
16. FINANCIAL INSTRUMENTS
The VECTOR group, of which the line business is the predominant activity, is subject to financial risk as a result of its debt portfolio.
To manage and limit the effect of those financial risks, the Board of Directors of VECTOR Limited, of which the line business is the predominant activity, has approved policy guidelines and authorised the use of various financial instruments. The policies approved, and financial instruments being utilised at balance date, are outlined below.
Credit risk
Financial instruments that potentially subject the VECTOR group, of which the line business is the predominant activity, to credit risk principally consist of bank balances, money market deposits and accounts receivable.
The VECTOR group, of which the line business is the predominant activity, monitors the credit quality of the major financial institutions that are counterparties to its off-balance sheet financial instruments and does not anticipate any non-performance by the counterparties.
Maximum exposures to credit risk as at balance date are:
| 2001 | 2000 | |
|---|---|---|
| Bank balances | 30,688 | 11,248 |
| Term deposits | - | 22,000 |
| Accounts receivables | 33,672 | 9,852 |
The above maximum exposures are net of any recognised provision for losses on these financial instruments.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 105
Gazette.govt.nz —
NZ Gazette 2001, No 105
✨ LLM interpretation of page content
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Vector Limited Notes to the Financial Statements
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🏭 Trade, Customs & IndustryFinancial Statements, Fixed Assets, ODV Valuation, Receivables, Financial Instruments, Credit Risk