✨ Financial Restatement
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
Restated Financial Information for the year ended 30 June 2007
Income Statement under NZ IFRS
| NZ GAAP | |
|---|---|
| $000 | |
| Operating revenue | 538,389 |
| Operating expenses | |
| Cost of goods sold | 204,683 |
| Employee costs | 57,465 |
| Net finance costs | 41,033 |
| Tax expense | 105,385 |
| Total | (419,566) |
| Net profit | 118,823 |
Restated Statement of Financial Position
| Total | |
|---|---|
| NZ IFRS | |
| $000 | |
| Financial Instruments | |
| Fair value hedges (a) | - |
| Deferred revenue (b) | 1,691 |
| Rental Incentive | |
| Fair value hedges (c) | (31) |
| Rental incentive (d) | 51 |
| Deferred Tax | |
| Deferred tax (g) | 1,091 |
| Total Adjustments | 538,490 |
| 1,391 | |
| 1,091 | |
| 1,174 | |
| 1,182 | |
| (597,742) | |
| 27,644 | |
| 69,577 | |
| (86,497) |
Notes to Restated Financial Information
(a) Financial instruments
Deal investments and derivatives are measured at fair value under IFRS, with the movement in fair value going to the Income Statement. Under NZ GAAP, long-term derivatives for which accrued interest was accrued separately in trade receivables and payables.
Fair-value includes accrued interest. Previously accrued interest was shown separately in trade receivables and payables.
(b) Intangible assets
Software and easements have been reclassified from property, plant and equipment to intangible assets.
(c) Leave provisions
A provision has been created for sick leave. Also, the existing long service leave provision has increased to incorporate the probability of leave being taken in periods beyond a year.
(d) Deferred revenue
The Lines Business has received money upfront to relating to new investment agreements.
New investment agreements – certain new investment agreements, whereby customer pays for Transpower to build and connection assets, are received upfront. Prior to IFRS, these were amortised over the contract period on a straight-line basis. Under IFRS, this must now be deferred over the underlying contract life on a yield to maturity basis recognising an imputed interest expense.
(e) Rental Incentive
Transpower receives a free rent period for the Wellington office.
Incentive must be amortised over the life of the lease.
(f) Fair value hedges
Transpower hedges foreign purchases over a 5.1 million “New Zealand Dollar” equivalent with forward foreign exchange contracts and accounts for these as fair value hedges.
(g) Deferred tax
Deferred tax is provided in full on temporary differences arising between the accounting and tax base of assets and liabilities. Deferred tax assets are only recognised to the extent that there will be future taxable profits or deferred tax liabilities to offset, these assets are recognised on a net basis where the Lines Business has a legal right of set-off within a tax jurisdiction.
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NZ Gazette 2008, No 186
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Restated Financial Information under NZ IFRS for Transpower New Zealand Limited Lines Business
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