✨ Financial Statements Notes
UNISON NETWORKS - LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For The Year Ended 31 March 2003
15 SEGMENT INFORMATION
The Company operates predominately in one industry - the ownership, management and operation of electricity networks within the Hawke's Bay, Rotorua and Taupo regions.
16 RESERVES
| 2003 | 2002 | |
|---|---|---|
| $'000 | $'000 | |
| Asset Revaluation Reserve | ||
| Balance at beginning of year | 63,646 | 63,646 |
| Revaluation Of Electrical Distribution Network | 48,520 | - |
| 112,166 | 63,646 |
Detailed As
| 2003 | 2002 | |
|---|---|---|
| Land | 278 | 278 |
| Revaluation of electrical distribution network | 111,888 | 63,368 |
| 112,166 | 63,646 |
17 RETAINED EARNINGS
| 2003 | 2002 | |
|---|---|---|
| $'000 | $'000 | |
| Balance at beginning of year | 2,207 | 1,180 |
| Net Surplus (Deficit) | 4,113 | 1,209 |
| Dividends Paid | (167) | (167) |
| Land and Building Revaluations | - | (15) |
| Balance at end of year | 6,153 | 2,207 |
*** As per the Transitional Provisions of Financial Reporting Standard 3
18 PROPERTIES INTENDED FOR SALE
| 2003 | 2002 | |
|---|---|---|
| $'000 | $'000 | |
| Buildings | 764 | 764 |
| Land | 549 | 549 |
| Total Properties Intended for Sale | 1,313 | 1,313 |
These properties are now included in Current Assets as at 31 March 2003 at the amounts valued by Logan Stone Ltd of Hastings as at 31 March 2000, adjusted for additions at cost and depreciation to 31 March 2003. These valuations were based on market value on an existing use basis as at 31 March 2000. The Directors consider this to reflect fair value.
19 EMPLOYEE ENTITLEMENTS
Employee entitlements expected to be taken within the 12 months following Balance Date are recorded as Current Liabilities. All other Employee Entitlements are recorded as Term Liabilities.
20 GOODWILL ARISING FROM ACQUISITION
| 2003 | 2002 | |
|---|---|---|
| $'000 | $'000 | |
| Opening balance | - | - |
| Goodwill purchased during the year | 89,888 | - |
| Amortised during the year | (1,844) | - |
| Closing balance | 88,044 | - |
Goodwill arising on acquisition is the result of accounting allocations and represents the balance of the purchase price for the Rotorua and Taupo electrical distribution networks after assigning fair values for financial reporting purposes to the appropriate asset classes. The valuation assigned for financial reporting purposes to the most significant category of the purchase price (namely the electrical distribution network) has been established using an optimised depreciated replacement cost methodology on an individual component basis, in accordance with Financial Reporting Standard 3: Property, Plant and Equipment.
This valuation approach appears to be gaining acceptance as one of the more objective valuation practices within the still evolving process for financial reporting purposes. However, it does have limitations as it takes minimal account of the integrated systemic value of the infrastructure in place, the value of consents, existing use rights, easements etc. These important elements of total system value remain under the generic heading 'Goodwill arising on acquisition'.
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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
✨ LLM interpretation of page content
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Unison Networks Limited Financial Statements Notes
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Segment Information, Reserves, Retained Earnings, Properties Intended for Sale, Employee Entitlements, Goodwill Arising from Acquisition