VECTOR ANNUAL REPORT 2021 /
Notes to the Financial Statements
11. Intangible assets continued 11.1 Goodwill continued
Climate Change Commission advice continued
The impact of any policy changes on the Commerce Commission’s regulatory model for the gas distribution network will be fundamental to any revision in assumptions for the valuation of the gas distribution CGU. The timing or extent of this is not yet known. The regulatory model determines the cash flows we can earn from the gas distribution business and hence its value. We will be monitoring any policy developments closely as the next reset for the regulatory default price path for gas distribution is due to come into force from 1 October 2022. Similarly, any policy changes could impact valuation assumptions for the natural gas, LPG and Liquigas CGUs. Vector performed an assessment for any indicators of impairment as at 30 June 2021. We did not model any potential impacts of the Climate Change Commission (“CCC”) advice during that assessment. While we determined there were no indicators of impairment as this time, we recognise that the Government’s policy response to the CCC advice may have signif icant risk to the cashflows and expected lives of the group’s gas distribution and gas trading businesses. Other intangible assets are initially measured at cost, and subsequently stated at cost less any accumulated amortisation and impairment losses. Software and customer intangibles have been assessed as having a f inite life greater than 12 months and are amortised from the date the asset is ready for use on a straight-line basis over its estimated useful life. The estimated useful lives (years) are as follows: Software 3 – 10 Customer intangibles 3 – 10 Easements are not amortised but are tested for impairment at least annually as part of the assessment of the carrying values of assets against the recoverable amounts of the CGUs to which they have been allocated.
11.2 Other intangible assets
12. Property, plant and equipment (PPE)
LAND, BUILDINGS AND IMPROVE MENTS $M
ELECTRICITY AND GAS METERS $M
COMPUTER AND TELCO EQUIPMENT $M
OTHER PLANT AND EQUIPMENT $M
CAPITAL WORK IN PROGRESS $M
DISTRIBUTION SYSTEMS $M
TOTAL $M
Carrying amount 30 June 2019
3,110.2 4,280.4 (1,170.2)
525.5 926.7
180.2 219.4
94.4
164.2 286.0
91.8 4,166.3 91.8 6,002.7
Cost
198.4
Accumulated depreciation
(401.2)
(39.2)
(104.0)
(121.8)
–
(1,836.4)
Additions Transfers
–
–
–
–
5.1
439.7
444.8
293.2
115.6
8.3
5.3
10.5
(432.9)
–
Sale of Kapuni gas interests
(17.3)
– –
(2.1) (0.2) (3.5)
–
(11.2)
– – –
(30.6)
Disposals
(3.2)
(0.3) (9.9)
(0.7)
(4.4)
Depreciation for the period
(124.2)
(59.2)
(11.6)
(208.4)
Carrying amount 30 June 2020
3,258.7
581.9
182.7 222.2
89.5
156.3 289.7
98.6 4,367.7 98.6 6,308.3
Cost
4,458.5 1,039.6
199.7
Accumulated depreciation
(1,199.8)
(457.7)
(39.5)
(110.2)
(133.4)
–
(1,940.6)
–
–
–
–
1.3
477.7
479.0
Additions Transfers Disposals
314.1
126.1
9.5
11.5
23.7
(484.9)
–
(6.3)
(0.2)
–
–
(1.3)
– –
(7.8)
(122.4)
(67.1)
(3.4)
(9.1)
(11.1)
(213.1)
Depreciation for the period
Carrying amount 30 June 2021
3,444.1
640.7
188.8 231.3
91.9
168.9 313.0
91.4 4,625.8 91.4 6,760.8
4,755.2 1,161.8
208.1
Cost
(1,311.1)
(521.1)
(42.5)
(116.2)
(144.1)
–
(2,135.0)
Accumulated depreciation
66
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