New Zealand Gazette – 2004 – No. 171

Page 4262

✨ Financial Statements



NEW ZEALAND GAZETTE, No. 171

22 DECEMBER 2004

TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS

NOTES TO THE FINANCIAL STATEMENTS continued

FOR THE YEAR ENDED 30 JUNE 2004

(g) Depreciation

Depreciation of 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:

  • Transmission Lines 35-70 years
  • 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 Rent 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 Statement of Financial Performance as expenses, in the period in which they are incurred.

(i) Statement of Cash Flows

The following are the definitions of the terms used in the Statement of Cash Flows:

  1. Cash and bank includes coins, notes and demand deposits. Cash includes liabilities which are the negative form of the above, such as the bank overdraft.

  2. Operations comprise the transmission of bulk electricity, and the related support, maintenance, administration and network costs.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2004, No 171


Gazette.govt.nz — PDF NZ Gazette 2004, No 171




✨ LLM interpretation of page content

🏭 Financial Performance of Transpower New Zealand Limited Lines Business (continued from previous page)

🏭 Trade, Customs & Industry
22 December 2004
Financial Statements, Depreciation, Leased Assets, Cash Flows