INDEPENDENT AUDITOR’S REPORT continued
The key audit matter
How the matter was addressed in our audit
— continued investment in developing a presence in the Australian electricity metering market to coincide with changes to the market regulation and structure. We consider the valuation of investments in new energy technologies and markets to be a key audit matter because of the judgement involved whether through; — valuing intangible assets and goodwill acquired in a business or asset purchase; — assessing the fair value of investments, when carried at fair value, in absence of a listed-market reference; or — considering impairment in markets where the future outcomes are more uncertain than in the Group’s established businesses.
relating to the “Power of Choice” regime that came into effect from 1 December 2017; — assessing whether there are indicators of impairment in respect of any of these investments; and — assessing the fair value of mPrest. We did not identify any material errors in the valuations attributed to the investments in the new non-regulated activities outlined opposite.
Use of this Independent Auditor’s Report This report is made solely to the shareholders as a body. Our audit work has been undertaken so that we might state to the shareholders those matters we are required to state to them in the Auditor’s Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the shareholders as a body, for our audit work, this report or any of the opinions we have formed.
Responsibilities of the Directors for the consolidated financial
statements The Directors, on behalf of Vector Limited, are responsible for:
— the preparation and fair presentation of the consolidated financial statements in accordance with generally accepted accounting practice in New Zealand (being NZ IFRS) and International Financial Reporting Standards; — implementing necessary internal control to enable the preparation of consolidated financial statements that are fairly presented and free from material misstatement, whether due to fraud or error; and — assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate or to cease operations, or have no realistic alternative but to do so.
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