✨ Financial Statements and Asset Valuation
16 JULY
NEW ZEALAND GAZETTE
1735
Revelations
Freehold land and buildings are revalued on a cyclical basis every three years. Valuations are at net current value as determined by an independent valuer.
Distribution system assets were revalued as at 31 March 2001 to optimised depreciated replacement cost (ODRC) as assessed by independent valuers PricewaterhouseCoopers and Meritec Limited. The previous revaluation of the distribution system assets undertaken in 1997 revalued the assets to 80% of the optimised deprival valuation (ODV).
Distribution system assets are revalued on a cyclical basis with no asset being recognised at a valuation undertaken more than three years previously.
Any revaluation surplus arising on the revaluation of a class of fixed assets is transferred directly to the asset revaluation reserve. A revaluation deficit in excess of the asset revaluation reserve balance for the class of fixed assets is recognised in the statement of financial performance in the period it arises. Revaluation surpluses which reverse previous revaluation deficits recognised in the statement of financial performance are recognised as revenue in the statement of financial performance.
Plant and equipment, computer equipment and motor vehicles are valued at cost less depreciation.
Disposal of fixed assets
Where a fixed asset is disposed of, the gain or loss recognised in the statement of financial performance is calculated as the difference between the sale price and the carrying amount of the fixed asset.
(d) Depreciation
Fixed assets have been depreciated in order to write off cost less estimated residual value over their estimated useful life on the following basis:
| Distribution assets | depreciated based on assessed residual life |
|---|---|
| Buildings (revalued) | 2% SL |
| Plant and equipment | 20% DV |
| Motor vehicles | 20% DV |
| Computer equipment | 48% DV |
(e) Taxation
The income tax expense charged to the statement of financial performance includes both the current year's provision and the income tax effects of timing differences calculated using the liability method.
Tax effect accounting has been applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or income tax benefits from income tax losses, is recognised only if there is virtual certainty of realisation.
(f) Vested assets
Vested assets from consumers are credited to the statement of financial performance.
(g) Receivables
Receivables are stated at their estimated realisable value. Bad debts are written off during the period in which they are identified.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2001, No 73
Gazette.govt.nz —
NZ Gazette 2001, No 73
✨ LLM interpretation of page content
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Certification of Financial Statements, Performance Measures, and Statistics Disclosed by Line Owners
(continued from previous page)
🏭 Trade, Customs & Industry29 June 2001
Audit, Certification, Valuation, Network Tasman Limited, System Fixed Assets