✨ Financial Statements Notes
UNISON NETWORKS LIMITED – LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2003
i. Capitalisation
Capital expenditure is defined as all expenditure incurred in the creation of a new asset, replacement of an asset that has reached the end of its economic life, or increased service potential of an existing asset. Constructed assets are included in property, plant and equipment as each becomes operational and available for use.
j. Cash Flows
For the purpose of the Statement of Cash Flows, cash includes cash on hand, deposits held on call with banks, and investments in money market instruments.
k. Employee Entitlements
A liability for annual leave, long service leave and retirement gratuities is accrued and recognised in the Statement of Financial Position. Liabilities for annual and long service leave are calculated on an entitlement basis at current rates. Retirement gratuity liability is calculated using current rates and appropriate probabilities for all qualifying staff aged 50 years or over. The calculations are based on the net present value of the estimated future cashflow. A discount rate of 6% and an inflation factor of 2.75% was used.
l. Property, Plant and Equipment Intended for Sale
Property, plant and equipment intended for sale are recognised at the lower of valuation and net realisable value.
m. Goodwill Arising on Acquisition
Goodwill arising on acquisition of subsidiaries/businesses/assets is amortised on a straight-line basis over the period of expected benefit or 20 years, whichever is the lesser.
n. Borrowings
Borrowings are stated at face value less unamortised discounts, premiums and prepaid interest. Discounts, premiums and prepaid interest are amortised to interest expenses on a yield to maturity basis over the period of the borrowing.
o. Goods and Services Tax
The financial statements have been prepared with revenue and expense items exclusive of GST. In the statement of financial position, accounts receivable and accounts payable are inclusive of GST. All other assets and liabilities are exclusive of GST.
p. Operating Leases
Payments made under operating leases are recognised in the Statement of Financial Performance on a basis representative of the pattern of benefits expected to be derived from the leased assets.
Changes in Accounting Policies
There have been no changes to accounting policies other than the application of the additional accounting policies relating to Financial instruments, Goodwill arising on acquisition and Borrowings as outlined in notes h, n and o respectively.
All policies, other than those noted above, have been applied consistently with the previous period.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2003, No 122
Gazette.govt.nz —
NZ Gazette 2003, No 122
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Unison Networks Limited Financial Statements Notes
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🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Capitalisation, Cash Flows, Employee Entitlements, Property Plant Equipment, Goodwill, Borrowings, GST, Operating Leases