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1. Company information Reporting entity
Vector Limited is a company incorporated and domiciled in New Zealand, registered under the Companies Act 1993 and listed on the NZX Main Board (NZX). The company is an FMC reporting entity for the purposes of Part 7 of the Financial Markets Conduct Act 2013. The f inancial statements comply with this Act. The f inancial statements presented are for Vector Limited Group (“Vector” or “the group”) as at, and for the year ended 30 June 2020. The group comprises Vector Limited (“the parent”) and its subsidiaries (together referred to as “the group”). In accordance with the Financial Markets Conduct Act 2013, where a reporting entity prepares consolidated f inancial statements, parent company disclosures are not required. Vector Limited is a 75.1% owned subsidiary of Entrust which is the ultimate parent entity for the group. The primary operations of the group are electricity and gas distribution, natural gas and LPG sales, metering, telecommunications and new energy solutions. The f inancial statements comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS), and other applicable Financial Reporting Standards, as appropriate for Tier 1 for–prof it entities. They also comply with International Financial Reporting Standards. The f inancial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP) as appropriate to Tier 1 for–prof it entities. They are prepared on the historical cost basis except for the following items, which are measured at fair value: — the identif iable assets and liabilities acquired in a business combination; and — certain f inancial instruments, as disclosed in the notes to the f inancial statements. The presentation currency is New Zealand dollars ($). All f inancial information has been rounded to the nearest 100,000, unless otherwise stated. The statements of prof it or loss, other comprehensive income, cash flows and changes in equity are stated exclusive of GST. All items in the balance sheet are stated exclusive of GST except for trade receivables and trade payables, which include GST. Vector’s management is required to make judgements, estimates, and apply assumptions that affect the amounts reported in the f inancial statements. They have based these on historical experience and other factors they believe to be reasonable. The table below lists the key areas of judgements and estimates in preparing these f inancial statements:
2. Summary of significant accounting policies Statement of compliance
Basis of preparation
Signif icant accounting policies, estimates and judgements
KEY AREAS
JUDGEMENTS / ESTIMATES
NOTE
Valuation of contingent consideration receivable
Estimates Estimates
5,18
Intangible assets: valuation of goodwill
10 11
Property, plant and equipment: classif ication of costs Judgements
Leases: assessment of lease term for perpetual leases and leases with renewal options
Judgements
12
Valuation of derivative f inancial instruments
Estimates
18,20
New standards effective
A number of new standards and interpretations are effective from 1 July 2019, but they do not have a material effect on the group's f inancial statements. A number of new standards and interpretations are effective for annual periods beginning on or after 1 July 2020 and earlier application is permitted, however the group has not early adopted the new or amended standards in preparing these consolidated f inancial statements. None of the amended standards and interpretations are expected to have a signif icant impact on the group's consolidated f inancial statements.
Notes to the Financial Statements
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