✨ Financial Statements
WEL NETWORKS LIMITED
14 NOVEMBER 2006 NEW ZEALAND GAZETTE, No. 135 3899
(e) Fixed Assets
The distribution system is revalued by independent valuers every three years based on an optimised deprival value basis. Additions to the distribution system are stated at cost.
Land and buildings are revalued by independent valuers every three years on the basis of open market value for existing use.
Cost for internally constructed assets comprise direct labour, materials, freight, and a proportion of production overheads based on a normal level of activity. All other fixed assets are recorded at cost less accumulated depreciation.
(f) Depreciation of Fixed Assets
Depreciation of the distribution system and buildings is provided for on a straight line basis over their estimated useful lives as follows:
| Buildings | 3.0% |
| Distribution system | 2.9% |
Depreciation of other fixed assets is provided for on a diminishing value basis as follows:
| Plant and Equipment | 20 - 50% |
| Vehicles | 25% |
(g) Principles of Line Business Split
The line business forms a segment of the operations of the Group. The allocation of costs, revenue, assets and liabilities was carried out on a basis which reflects the items attributable to this segment of the Group.
Where possible, financial statement items were allocated directly to the line business. In those instances where direct allocation was not possible, the avoidable cost allocation methodology was employed, which has resulted in allocations as follows:
Corporate Overheads
Corporate overhead costs were allocated as follows:
| Directors fees and associated costs | Weighted fixed assets |
| Chief executive and associated costs | Weighted fixed assets |
| Consultants and business analysts | Weighted fixed assets |
| All other costs | Weighted staff numbers |
Items have been weighted by multiplying the value attributable to Other by 33%
Property Costs
Allocated using market based rentals.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 135
Gazette.govt.nz —
NZ Gazette 2006, No 135
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