New Zealand Gazette – 2005 – No. 200

Page 5070

✨ Financial Statements Notes



5070

NEW ZEALAND GAZETTE, No. 200

30 NOVEMBER 2005

TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS

NOTES TO THE FINANCIAL STATEMENTS continued

FOR THE YEAR ENDED 30 JUNE 2005

12. LONG TERM DEBT continued

Structured Financing Transaction

In 2002, Transpower entered into a transaction which raised gross funds of $732,700,000 of which $532,700,000 was on-lent to financial institutions. In prior years, the transaction was recorded in the Transpower Group and in the Lines Business on a net basis. In the current year, the auditor recently appointed by the Auditor-General has reviewed the accounting treatment of this transaction and has concluded that it should be shown gross for the purposes of the Transpower Group financial statements. That treatment is reflected in these financial statements. Prior year comparatives have, in consequence, been changed to conform to the current year presentation. Related additional interest expense and interest income of $33,616,000 have been recorded in the Statement of Financial Performance and the Statement of Cash Flows. It is important to note that these adjustments do not in any way change the economic substance of the transaction, which is that there is a net obligation of $200,000,000. In addition, the previously reported total equity and the net surplus both remain unchanged.

13. CAPITAL

Transpower’s share capital consists of 1,200,000,000 (2004: 1,200,000,000) issued and fully paid ordinary shares which confer on the holders the right to vote at any annual general meeting of Transpower. All ordinary shares rank equally.

14. RESERVES

LINES BUSINESS 2005 $000 LINES BUSINESS 2004 $000
Asset revaluation reserve
Balance at the beginning of the year - -
Revaluation (devaluation) of fixed assets* - (5,477)
Transfer to retained earnings - -
Transfer to statement of financial performance - 5,477
Balance at the end of the year - -
Total reserves - -

*Transpower’s fixed assets were written down in previous years through the Statement of Financial Performance. Subsequent revaluations have not recovered this previous write down, hence such revaluations and any further devaluations are taken directly to the Statement of Financial Performance.

15. ACCUMULATED DEFICIT
Balance at the beginning of the year (191,973) (236,539)
Operating surplus after tax 90,759 61,309
Accumulated deficit before dividends paid (101,214) (175,230)
Dividends paid (37,927) (16,743)
Balance at the end of the year (139,141) (191,973)

16. DIVIDENDS TO THE SHAREHOLDER
Final dividend paid 37,927 16,743
Interim dividend paid - -
37,927 16,743

Subsequent to balance date, the directors have declared a final dividend payable of $10,000,000 for the Transpower Group. Calculating the Transpower Lines Business dividend on the same basis, this would amount to $6,414,000.



Next Page →



Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2005, No 200


Gazette.govt.nz — PDF NZ Gazette 2005, No 200




✨ LLM interpretation of page content

🏭 Notes to the Financial Statements for Transpower New Zealand Limited Lines Business (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Long Term Debt, Capital, Reserves, Accumulated Deficit, Dividends