✨ Financial Statements
3500
NEW ZEALAND GAZETTE, No. 143
26 AUGUST 2005
UNISON NETWORKS - LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For The Year Ended 31 March 2005
13 FINANCIAL INSTRUMENTS ...continued
d) Fair values
The methods and assumptions used are that carrying amounts in the Financial Statements reflect the estimated fair value of the financial instruments including receivables, bank and investments, accounts payable and term debt. There were no material investments at balance date.
e) Currency risk
Unison enters into forward exchange contracts for any significant transactions conducted in currency other than the New Zealand dollar to eliminate the effects of any currency fluctuations. At balance date no forward exchange contracts were in operation (2004:nil)
14 SEGMENT INFORMATION
Unison operates predominantly in one industry - the ownership, management and operation of electricity networks within the Hawke’s Bay, Rotorua and Taupo regions
15 RESERVES
| 2005 | 2004 | |
|---|---|---|
| $000 | $000 | |
| Asset Revaluation Reserve | ||
| Balance at beginning of year | 112,166 | 112,166 |
| Revaluation of electrical distribution network | - | - |
| 112,166 | 112,166 | |
| Detailed As | ||
| Land | 278 | 278 |
| Revaluation of electrical distribution network | 111,888 | 111,888 |
| 112,166 | 112,166 |
16 RETAINED EARNINGS
| 2005 | 2004 | |
|---|---|---|
| $000 | $000 | |
| Balance at beginning of year | 17,050 | 6,153 |
| Net Surplus | 18,700 | 10,977 |
| Dividends Paid | 3,038 | 80 |
| Land and building revaluations | - | - |
| Balance at end of year | 32,712 | 17,050 |
17 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.
18 GOODWILL ARISING FROM ACQUISITION
| 2005 | 2004 | |
|---|---|---|
| $000 | $000 | |
| Goodwill at cost | 89,888 | 89,888 |
| Goodwill purchased during the year | - | - |
| Accumulated amortisation | (10,834) | (6,339) |
| Balance at year end | 79,054 | 83,549 |
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 (ODRC) methodology on an individual component basis, in accordance with Financial Reporting Standard 3, Property, Plant and Equipment. The ODRC methodology has 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 2005, No 143
Gazette.govt.nz —
NZ Gazette 2005, No 143
✨ LLM interpretation of page content
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Unison Networks Limited - Notes to Financial Statements
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial reporting, Fair values, Currency risk, Segment information, Reserves, Retained earnings, Employee entitlements, Goodwill