✨ Financial Statements
31 AUGUST 2005 NEW ZEALAND GAZETTE, No. 150 3675
Scanpower Limited
Statement of Significant Accounting Policies (Continued)
For the Year Ended 31 March 2005
Property, Plant and Equipment
Owned Assets
Property, Plant and Equipment is initially stated at cost and depreciated as outlined below. Initial cost includes the purchase consideration, and those costs directly attributable to bringing the asset to the location and condition necessary for its intended use. These costs include, where appropriate, site preparation costs, installation costs, borrowing costs and the cost of obtaining initial resource consents. Costs cease to be capitalised when substantially all the activities necessary to bring an asset to the location and condition for its intended use are complete.
Leased Assets
Leases in which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Assets acquired by way of finance lease are stated initially at an amount equal to the future minimum lease payments, and are depreciated as described below.
Revaluations
The Network Distribution assets were revalued as at 31 March 2004 on the basis of the Commerce Commission’s “Handbook for Optimised Deprival Valuation of System Fixed Assets of Electricity Lines Businesses” issued 30 August 2004. The valuation was prepared by Mr J R Collins B Eng.(Elec.) MBA of Scanpower Limited and was reviewed by PricewaterhouseCoopers and Eddie Graham B.E.(Elec.) FIPENZ. The valuation is expressed on an optimised depreciated replacement cost (ODRC)/optimised deprival value (ODV) basis. Previously these assets were valued at cost less accumulated depreciation.
Land and Buildings are revalued to fair value with regard to highest and best use. Fixed assets within these classes are revalued on a cyclical basis with no asset being recognised at a valuation undertaken more than five years previously. The most recent Land and Building valuation was conducted by an independent registered valuer, Mr. I.R. Mollison ANZIV, of the firm Ian Mollison & Associates, Dannevirke, on 31 March 2002.
Depreciation
Depreciation of Property, Plant and Equipment, other than Freehold Land, is calculated on a straight line basis so as to expense the cost of the assets, or the revalued amounts, to their residual values over their useful lives. The useful economic lives used for depreciation purposes are as follows:
| Distribution Assets |
|---|
| Lines – wood |
| Lines – concrete |
| Lines – underground |
| Transformers |
| Substations |
| Switchgear |
| Air break switches |
| Customer connections |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 150
Gazette.govt.nz —
NZ Gazette 2005, No 150
✨ LLM interpretation of page content
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Scanpower Limited Statement of Significant Accounting Policies
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Operating Revenue, Taxation, Goods and Services Tax, Receivables, Inventories, Scanpower Limited
- J. R. Collins, Prepared Network Distribution assets valuation
- Eddie Graham, Reviewed Network Distribution assets valuation
- I. R. Mollison, Conducted Land and Building valuation