New Zealand Gazette – 2005 – No. 23

Page 544

✨ Financial Statements



UNISON NETWORKS - LINES BUSINESS

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For The Year Ended 31 March 2004

14 FINANCIAL INSTRUMENTS ...continued

e) Currency risk

The Company enters into forward exchange contracts for any transactions conducted in currencies other than the New Zealand dollar to eliminate the effects of any currency fluctuations. At balance date no forward exchange contracts were in operation (2003:nil)

15 SEGMENT INFORMATION

The Company operates predominantly in one industry - the ownership, management and operation of electricity networks within the Hawke's Bay, Rotorua and Taupo regions.

16 RESERVES

2004 $\000 2003 $\000
Asset Revaluation Reserve
Balance at beginning of year 112,166 63,646
Revaluation of Electrical Distribution Network - 48,520
Detailed As 112,166 112,166
Land 278 278
Revaluation of electrical distribution network 111,888 111,888
112,166 112,166

17 RETAINED EARNINGS

2004 $\000 2003* $\000
Balance at beginning of year 6,153 2,207
Net Surplus 10,977 4,113
Dividends Paid 30 167
Balance at end of year 17,050 6,153

18 PROPERTIES INTENDED FOR SALE

2004 $\000 2003* $\000
Buildings - 764
Land - 549
Total Properties Intended for Sale - 1,313

During the year all properties intended for sale were sold. The gains and losses are reflected in the operation expenses under note 5.

19 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.

20 GOODWILL ARISING FROM ACQUISITION

2004 $\000 2003* $\000
Opening balance 88,044 -
Goodwill purchased during the year - 89,888
Less Amortised during the year 4,495 1,844
Closing balance 83,549 88,044

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".

*Comparisons for 2003 include the Hawke's Bay area for the full year and Rotorua/Taupo for 5 months only.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2005, No 23


Gazette.govt.nz — PDF NZ Gazette 2005, No 23




✨ LLM interpretation of page content

🏭 Notes to and Forming Part of the Financial Statements for Unison Networks - Lines Business (continued from previous page)

🏭 Trade, Customs & Industry
Financial statements, Financial instruments, Currency risk, Segment information, Reserves, Retained earnings, Properties for sale, Employee entitlements, Goodwill