✨ Financial Statements Accounting Policies
NEW ZEALAND GAZETTE, No. 186
28 NOVEMBER 2008
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
Unrealised gains and losses arising from changes in the fair values are included in the income statement in the period in which they arise.
i) Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not traded in an active market. These assets are carried at amortised cost using the effective interest rate method.
j) Trade and Other Payables
Trade and other payables are carried at amortised cost. They represent liabilities for goods and services provided to the Transpower Lines Business prior to the end of the financial year that are unpaid.
Provisions are liabilities of uncertain timing or amount. They are measured at the amounts expected to be paid when the liabilities are settled.
k) Available for Sale Financial Assets
Available for sale financial assets are non-derivatives that are either designated as available for sale by management or not designated in any of the other categories. These investments are carried at fair value with any unrealised gains and losses arising from changes in fair value recognised directly in equity. On sale or on impairment, the accumulated fair value adjustments are included in the income statement.
l) Property, Plant and Equipment
Property, plant and equipment is recognised at cost less accumulated depreciation. Cost is determined by including all costs directly associated with bringing the assets to their location and condition for their intended use.
m) Capital Work in Progress
Capital work in progress is recorded at cost. Cost is determined by including all costs directly associated with bringing the assets to their location and condition. Finance costs incurred during the period of time that is required to complete and prepare the asset for its intended use are capitalised as part of the total cost for capital work in progress. The finance costs capitalised are based on the Transpower Lines Business’s weighted average cost of borrowing. Assets are transferred from capital work in progress to property, plant and equipment as they become operational and available for use.
n) Depreciation
Depreciation of property, plant and equipment is calculated using the straight line method to write down the cost of property, plant and equipment to its estimated residual value over its estimated useful life.
The estimated useful lives are as follows:
| Transmission lines | 20-75 years |
| Freehold buildings | 30-55 years |
| Substations | 8-55 years |
| HVDC | 3-30 years |
| Communications | 3-25 years |
| Administration assets | 3-10 years |
o) Non Current Assets Held for Sale
Non current assets (and disposal groups) classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell.
Non current assets (and disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use.
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NZ Gazette 2008, No 186
✨ LLM interpretation of page content
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Transpower New Zealand Limited Lines Business Financial Statements
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🏭 Trade, Customs & IndustryFinancial Statements, Accounting Policies, Revenue Recognition, GST, Accounts Receivable, Inventories, Investments, Fair Value, Derivatives, Loans, Receivables, Trade Payables, Available for Sale Financial Assets, Property, Plant and Equipment, Capital Work in Progress, Depreciation, Non Current Assets Held for Sale