✨ Financial Statements
362 NEW ZEALAND GAZETTE, No. 16 18 JANUARY 2005
f) Property, Plant and Equipment
Revaluation
The network system assets were revalued as at 31 March 2004 to Depreciated Replacement Cost (DRC) as assessed by independent valuers MWII New Zealand Limited.
Network assets are revalued on a cyclical basis to fair value using a Depreciated Replacement Cost methodology with no asset being recognised at a valuation undertaken more than five years previously.
Revaluation increments are transferred to the Asset Revaluation Reserve.
All other assets are recorded at cost less accumulated depreciation.
g) Depreciation
Property, Plant and Equipment is depreciated on the basis of valuation cost price less estimated residual value over the period of their estimated useful life.
Rates used are:
| Buildings | 2.50% – 15.00% | Straight Line/Diminishing Value |
| Office Equipment & EDP Equipment | 9.00% – 60.00% | Diminishing Value |
| Motor Vehicles | 26.00% – 31.20%| Diminishing Value |
| Network Assets | 1.82% – 16.67% | Straight Line/Diminishing Value |
h) Asset Impairment
Where the estimated recoverable amount of an asset is less than its carrying value, the asset is written down to its estimated recoverable amount and an impairment loss is recognised in the Statement of Financial Performance.
i) Income Tax
The income tax expense charged against the profit for the year is the estimated liability calculated at 33 cents in the dollar in respect of that profit.
j) Work In Progress
The carrying value of work in progress includes the cost of direct material and direct labour used in putting replacement and new systems in their present location and condition.
k) Goods And Services Tax
These accounts have been prepared on a GST exclusive basis with the exception of accounts receivable and accounts payable which are GST inclusive.
l) Financial Instruments
The Line Business is party to financial instrument arrangements as part of its everyday operations. Revenues and expenses in relation to all financial instruments are recognised in the Statement of Financial Performance on an accrual basis.
The Line Business has no off-balance sheet exposures. The Line Business values all financial instruments at fair value in the Statement of Financial Position.
m) Operating Leases
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Payments under these leases are recognised as expenses in the periods in which they are incurred.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2005, No 16
Gazette.govt.nz —
NZ Gazette 2005, No 16
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Financial Statements for The Power Company Limited Line Business
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🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Reporting Entity, Measurement Base, Revenue, Consolidation, Customer Contributions, Avoidable Cost Allocation, Property, Plant and Equipment, Revaluation, Depreciation, Asset Impairment, Income Tax, Work In Progress, Goods And Services Tax, Financial Instruments, Operating Leases