✨ Impairment and Asset Management
28 NOVEMBER 2011 NEW ZEALAND GAZETTE, No. 184 5329
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
Transpower has determined that each property is an individual Cash Generating Unit. Given the general downturn in the property market Transpower has estimated an impairment charge for the expected loss when it eventually sells the properties.
Intangible assets
Easements
Transpower is required to have an indefinite useful life because:
(i) There is no expiry
(ii) Transpower expects to use the easements indefinitely based on past experience.
Easements are also reviewed annually for any action triggers and related costs such as resource consents.
The cost of easements are expected to be fully recovered from transmission customers.
Right to access assets
The most significant right to access asset relates to the 2011 purchase of access rights to the Vector Tunnel in Auckland for $80 million. The Vector Tunnel right to access asset is being amortised over the control life, 90 years.
Software
The amortisation of software occurs over 5-8 years.
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NZ Gazette 2011, No 184
✨ LLM interpretation of page content
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Impairment for Transpower New Zealand Limited
(continued from previous page)
💰 Finance & RevenueImpairment, Property Market, Cash Generating Unit, Easements, Resource Consents, Vector Tunnel, Access Rights, Software Amortisation