New Zealand Gazette – 2002 – No. 173

Page 4360

✨ Financial Statements Notes



NEW ZEALAND GAZETTE

No. 173

TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS

NOTES TO THE FINANCIAL STATEMENTS continued

FOR THE YEAR ENDED 30 JUNE 2002

(f) Fixed Assets (continued)

The finance costs capitalised are based on the actual costs directly attributable to the construction of the asset. Where this is not clearly identifiable, Transpower’s weighted average cost of capital is used.

Assets are transferred from capital work in progress to fixed assets as they become operational and available for use.

(g) 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

(h) 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 and 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.

(i) 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 facilities which are the negative form of the above, such as the bank overdraft.

(ii) Operations 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 2002, No 173


Gazette.govt.nz — PDF NZ Gazette 2002, No 173




✨ LLM interpretation of page content

🏭 Transpower New Zealand Limited Notes to Financial Statements (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Fixed Assets, Depreciation, Leased Assets, Cash Flows