✨ Financial Statements
3106
NEW ZEALAND GAZETTE, No. 128
17 AUGUST 2005
- PROPERTY, PLANT AND EQUIPMENT
| 31 March 2005 $000 | 31 March 2004 $000 | |
|---|---|---|
| Land (At Valuation) | 87 | 87 |
| Buildings (At Valuation and Cost) | 1,027 | 812 |
| Accumulated Depreciation | (45) | (23) |
| 982 | 789 | |
| Plant and Equipment (At Valuation and Cost) | 190 | 188 |
| Accumulated Depreciation | (44) | (28) |
| 146 | 160 | |
| Office Equipment and EDP Equipment (at cost) | 118 | - |
| Accumulated Depreciation | (8) | - |
| 110 | - | |
| Network Assets (At Valuation and Cost) | 98,412 | 96,661 |
| Accumulated Depreciation | (9,231) | (5,821) |
| 89,181 | 90,840 | |
| Total Property, Plant and Equipment | 90,506 | 91,876 |
Property, plant and equipment is recorded at fair value at the date of acquisition. Subsequent additions are recorded at cost.
- INTANGIBLES
| 31 March 2005 $000 | 31 March 2004 $000 | |
|---|---|---|
| Opening Goodwill Arising on Acquisition | 15,140 | 15,140 |
| Amortised During the Period | (2,081) | (1,324) |
| Total Intangibles | 13,059 | 13,816 |
Goodwill has been amortised over 20 years as prescribed by FRS36 Accounting for Acquisitions Resulting in Combinations of Entities.
It is the view of the Management Committee that amortisation of goodwill as prescribed by FRS36 is inappropriate. The assets purchased have an average life of 53 years and were valued and purchased on the basis that they would continue in perpetuity.
The Management Committee believe that amortisation of goodwill over a 20 year period results in the understatement of the operating surplus in these accounts by an amount of $757,000 (2004: $756,000).
There is considerable industry concern that the acquisition of infrastructure assets is not appropriately treated under FRS36, particularly in relation to the establishment of goodwill and the minimum amortisation requirements for goodwill. The adoption of international accounting standards (optional from 2005) will require amortisation on the basis of an annual impairment test.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 128
Gazette.govt.nz —
NZ Gazette 2005, No 128
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Financial Performance Statement for OtagoNet Joint Venture
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial statements, OtagoNet Joint Venture, Property, Plant and Equipment, Intangibles, Goodwill, Amortisation, FRS36, Accounting for Acquisitions Resulting in Combinations of Entities