✨ Financial Statements Analysis
Fixed Assets and Depreciation
(i) Valuation
Fixed Assets comprise:
Distribution System Assets (being the network system consisting of distribution and transmission lines and cables, zone substations, distribution transformers, protection and control equipment, communications equipment and metering).
Other Assets (being land, buildings, plant and equipment, motor vehicles, furniture and fittings).
Distribution System Assets were revalued to Depreciated Replacement Cost which incorporates a valuation based on the engineering optimisation of the system and its components after allowing for depreciation. The valuation was conducted by KPMG in conjunction with Kerslake and Partners, Registered Valuers, as at 31 March 2004.
Land and Buildings were revalued to market value as at 31 March 2004. The valuation was conducted by Coast Valuations Limited, registered valuers.
All other fixed assets are valued at cost less accumulated depreciation where applicable.
Distribution equipment is revalued on a cyclical basis with no individual asset being included at a valuation made more than three years previously.
Additions between revaluations are recorded at cost.
(ii) Depreciation
Distribution Assets are depreciated using the straight line method at rates which amortise the cost or valuation less estimated residual value over their economic lives.
The main basis are periods not exceeding:
Electricity Distribution System 15 – 70 years
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 145
Gazette.govt.nz —
NZ Gazette 2006, No 145
✨ LLM interpretation of page content
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Certification of Financial Statements and Performance Measures for Westpower Limited
(continued from previous page)
🏭 Trade, Customs & Industry17 November 2006
Electricity, Financial Statements, Performance Measures, Westpower Limited, Commerce Commission
🏭 Fixed Assets and Depreciation Policy
🏭 Trade, Customs & IndustryFixed Assets, Depreciation, Valuation, Distribution System, Electricity