Vector Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS

14. Investments:// CONTINUED

14.3 Interest in joint operation

INTEREST HELD

JOINT OPERATION

PRINCIPAL ACTIVITY

BALANCE DATE

2017

2016

Kapuni Energy Joint Venture Cogeneration plant operator 30 June

50%

50%

Policies

A joint operation is where Vector is a party to a joint arrangement, and has rights to the assets and obligations for the liabilities relating to the arrangement. Vector has assessed that the contractual arrangement governing the Kapuni Energy Joint Venture, of which Vector Kapuni Limited is a party, meets the criteria of a joint arrangement, and that the rights and obligations conferred by that contract meet the classification of a joint operation. The interest in the joint operation is reported in the financial statements using the proportionate method.

14.4 Other investments

NZ Windfarms Limited During the year, the group reclassified its investment in NZ Windfarms Limited as a financial asset, measured at fair value through other comprehensive income (“OCI”). The investment was previously treated as an associate. The fair value of the investment is determined by reference to its active market price on the New Zealand Stock Exchange. For disclosure purposes, it is classified as level 1 on the fair value hierarchy, explained further in Note 22. On initial measurement to fair value, a loss of $1.1 million was recognised in profit or loss, as shown in Note 8.

15. Intangible assets://

CUSTOMER INTANGIBLES $000

TRADE NAMES $000

EASEMENTS $000

SOFTWARE $000

GOODWILL $000

TOTAL $000

NOTE

Carrying amount 1 July 2015

15,299 21,742

14,751

51,773

– 1,560,960 1,642,783 – 1,560,960 1,815,435

Cost

14,751 217,982

Accumulated amortisation

(6,443)

– (166,209)

– –

– (172,652)

Transfers from PPE

– – –

34,817 (35,025)

29,528 (1,189)

64,345

Sale of discontinued operations

– (298,823)

(335,037) (64,000) (27,716)

Impairment

– –

– –

(64,000)

Amortisation for the period Carrying amount 30 June 2016

(2,271) 13,028 21,742 (8,714)

(25,445) 54,667

14,543

– 1,198,137 1,280,375 – 1,198,137 1,463,463

Cost

14,543 229,041

Accumulated amortisation

– (174,374)

– –

– (183,088)

Transfers from PPE

1,763

24,849

26,612

Acquisition of business

28,200

– – –

2,123

16,800

67,868 114,991

27

Disposals

(11)

– –

(11)

Amortisation for the period Carrying amount 30 June 2017

(2,755) 38,473 49,942 (11,469)

(21,759) 59,869

(209)

(24,723)

16,306

16,591 1,266,005 1,397,244 16,800 1,266,005 1,601,569

Cost

16,306 252,516

Accumulated amortisation

– (192,647)

(209)

– (204,325)

96

Vector://AR 17

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