✨ Financial Statements
UNISON NETWORKS - LINES BUSINESS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 March 2007
16 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 non-current liabilities.
17 GOODWILL ARISING FROM ACQUISITION
| 2007 | 2006 | |
|---|---|---|
| $000 | $000 | |
| Goodwill at cost | 89,888 | 89,808 |
| Restatement of goodwill | (60,559) | (60,559) |
| Accumulated amortisation | (16,173) | (15,329) |
| Balance at year end | 13,156 | 14,000 |
Goodwill arising on acquisition has been assessed for impairment assuming future cash inflows and outflows relating to the Taupo and Rotorua assets in existence as at 31 March 2007. Cash inflows are based on Line Charge Revenues consistent with Unison’s agreed Administrative Settlement offer with the Commerce Commission and regional allocations in line with Unison’s cost of supply model. Cash outflows relate to operating and capital expenditure allocations using current best estimates and reflect expenditure essential to maintaining the assets at their current service capability. Note that any changes to these assumptions can have a material impact on the remaining goodwill balance and therefore the assessed goodwill adjustment.
18 CAPITAL WORK IN PROGRESS
| 2007 | 2006 | |
|---|---|---|
| $000 | $000 | |
| Electrical distribution network | 17,697 | 4,798 |
| Other | 1,538 | 406 |
| 19,235 | 5,204 |
19 ACCOUNTS PAYABLE AND ACCRUALS
| 2007 | 2006 | |
|---|---|---|
| $000 | $000 | |
| Trade creditors | 11,794 | 8,363 |
| Final dividend payable | - | 4,500 |
| Interest payable | 1,433 | 1,239 |
| 13,227 | 14,102 |
20 EVENTS SUBSEQUENT TO BALANCE DATE
On 15 June 2007 the Unison Board declared a fully imputed dividend of $7.2 million to the Hawkes Bay Power Consumers
On 12 June 2007 Unison Networks Limited terminated its contract with Siemens (NZ) Limited, effective 1 July 2007, for the provision of maintenance and defined capital works over the Taupo and Rotorua networks. Unison Contracting Services Limited (incorporated on 5 April 2007), a wholly owned subsidiary of Unison Networks Limited, simultaneously acquired certain assets from Siemens and employed staff necessary to carry on these maintenance and capital works services in Taupo and Rotorua.
Since 31 March 2007 the corporate tax rate has been reduced from 33% to 30% with effect from the 2008/09 year. The unrecognised deferred tax liability disclosed under Note 3 ($37.1 million) has been based on the current rate of income tax of 33%. Had the new rate been used, the unrecognised deferred tax liability would have been reduced to $33.6 million.
Note 21 "Other Matters" refers to the administrative settlement reached with the Commerce Commission in May 2007.
There have been no other significant reporting events subsequent to balance date.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 53
Gazette.govt.nz —
NZ Gazette 2008, No 53
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Unison Networks Limited - Lines Business Financial Position Statement
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🏭 Trade, Customs & IndustryFinancial Statements, Employee Entitlements, Goodwill, Capital Work in Progress, Accounts Payable, Events Subsequent to Balance Date