✨ Financial Statements Notes
3288
NEW ZEALAND GAZETTE
No. 123
HAWKE’S BAY NETWORK LIMITED – LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2002
All other items of Property, Plant and Equipment are initially stated at cost and depreciated as outlined in note 2(b) below.
Revaluations
The Electrical Distribution Network is revalued on a cyclical basis with no components being recognised at a valuation undertaken more than three years previously.
Land and Buildings are revalued on a cyclical basis at no more than 5 yearly intervals.
Land and Buildings intended for sale are stated at their 31 March 2000 valuation. These properties within this class have been transferred to Current Assets to reflect their pending sale.
Any revaluation surplus arising on the revaluation of a class of property, plant or equipment is transferred directly to the Asset Revaluation Reserve. A revaluation deficit in excess of the Asset Revaluation Reserve balance for the class of property, plant or equipment 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.
Disposal of Property, Plant and Equipment
When an item of property, plant or equipment is disposed of, any gain or loss is recognised in the Statement of Financial Performance and is calculated as the difference between the sale price and the carrying value of the asset.
The carrying values of Property, Plant and Equipment do not exceed their estimated recoverable value.
b. Depreciation
Depreciation is provided on a straight line basis on all tangible items of property, plant and equipment other than freehold land, at rates calculated to allocate the assets’ cost or valuation less any residual value, over their estimated useful lives. Depreciation on the Electrical Distribution Network for the financial year ending 31 March 2001 was based on the Optimised Deprival Value methodology as at March 1997, adjusted for additions and depreciation to 31 March 2001. From 1 April 2001 depreciation has been calculated for the Electrical Distribution Network valued at Optimised Depreciated Replacement Cost (ODRC).
The estimated useful lives of Property, Plant and Equipment are as follows:
Electrical Distribution Network
33kV Sub Transmission .................................................. 35 - 70 Years
Zone Substations, Structures and Equipment ..................... 15 - 60 Years
Distribution Transformers ............................................. 40 - 45 Years
Distribution Switchgear ................................................ 35 - 55 Years
Overhead Lines ........................................................... 45 - 60 Years
Underground Cables .................................................... 45 - 70 Years
Other Distribution Equipment ........................................ 5 - 70 Years
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 123
Gazette.govt.nz —
NZ Gazette 2002, No 123
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Hawke's Bay Network Limited Financial Statements
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🏭 Trade, Customs & Industry31 March 2002
Electricity, Financial Statements, Accounting Policies, Property, Plant, Equipment, Hawke's Bay Network Limited