✨ Financial Statements
9. Non current assets held for sale
LINES BUSINESS
| 2010 $'000 | 2009 $'000 | |
|---|---|---|
| NIGUP property held for sale | 25,864 | - |
| Low voltage assets held for sale | 7,980 | - |
| Total non current assets held for sale | 33,844 | – |
| Gain (loss) on revaluation to net estimated sale price | (5,222) | - |
This gain (loss) relates to NIGUP properties only.
Reconciliation of NIGUP property
| $'000 | |
|---|---|
| Purchase price of NIGUP property | 203,274 |
| less easements and related costs transferred to intangible assets | (33,538) |
| less Fonterra shares transferred to available for sale financial assets | (4,102) |
| less depreciation | (894) |
| NIGUP property, plant and equipment gross value | 164,740 |
| Estimated market value of property net of estimated selling fees | 135,573 |
| Net gain (loss) | (29,167) |
The gross value of property can be broken down into:
| $'000 | |
|---|---|
| Property held for sale | 25,864 |
| Property, plant and equipment | 109,709 |
The net gain (loss) can be broken into:
| $'000 | |
|---|---|
| Property held for sale gain (loss) | (5,222) |
| Property, plant and equipment impairment gain (loss) | (23,945) |
| Net gain (loss) | (29,167) |
Note that the NIGUP property, plant and equipment impairment loss in Note 14 Property, Plant and Equipment is $24.8 million. The difference of $0.9 million to the $23.9 million figure above is due to Note 14 including losses on property sold during the year.
Low voltage assets held for sale
Certain low voltage transmission assets are held for sale. The sales are expected to be finalised within the next 12 months.
NIGUP property
The Transpower Lines Business holds 86 properties along the route of the line being constructed between Whakamaru and South Auckland as at 30 June 2010 relating to the North Island Grid Upgrade Project (NIGUP). The line was approved by the Electricity Commission on 5 July 2007, with designation and resource consenting being granted by the Board of Inquiry on 18 September 2009. Five properties were sold in the period.
For regulatory purposes, The Transpower Lines Business does not charge customers for losses (or rebate any gains) from movements in property values, where the property was purchased solely to obtain an easement. Only easements and related costs from these properties are charged to customers.
The Transpower Lines Business has determined that each property is an individual Cash Generating Unit. Given the general downturn in the property market: The Transpower Lines Business has estimated an impairment charge of $24.8 million for the expected gross loss on its properties when it eventually sells the properties. At 30 June 2009 there was no impairment on these properties. In addition to the impairment on properties not yet being marketed for sale certain properties are classified as held for sale and a loss of $5.2 million has been recognised on those properties. In 2009 there were no properties deemed as held for sale.
The properties are deemed part of the Lines Business because the properties were purchased for the purposes of carrying out specified services.
Next Page →
NZ Gazette 2010, No 159
✨ LLM interpretation of page content
🏭
Transpower New Zealand Limited Financial Statements
(continued from previous page)
🏭 Trade, Customs & Industry19 November 2010
Financial statements, Non current assets, NIGUP property, Low voltage assets, Impairment, Market value