NOTES TO THE FINANCIAL STATEMENTS
01. 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 financial statements comply with this Act. The financial statements presented are for Vector Limited Group (“Vector” or “the group”) as at, and for the year ended 30 June 2018. The group comprises Vector Limited (“the parent”), its subsidiaries, and its investments in associates, financial assets and joint arrangements. In accordance with the Financial Markets Conduct Act 2013, where a reporting entity prepares consolidated financial 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, gas processing, metering, telecommunications and new energy solutions. The financial 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-profit entities. They also comply with International Financial Reporting Standards. The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP) as appropriate to Tier 1 for-profit entities. They are prepared on the historical cost basis except for the following items, which are measured at fair value: —— the identifiable assets and liabilities acquired in a business combination; and —— certain financial instruments, as disclosed in the notes to the financial statements. The presentation currency is New Zealand dollars ($). All financial information has been rounded to the nearest 100,000, unless otherwise stated. The statements of profit 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 financial statements. They have based these on historical experience and other factors they believe to be reasonable. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in the future periods affected. Accounting policies, and information about judgements, estimations and assumptions that have had a significant effect on the amounts recognised in the financial statements are disclosed in the relevant notes as follows: —— Revenue recognition (Note 5) —— Consolidation basis and classification and valuation of investments (Note 12) —— Impairment and valuation of goodwill (Note 13) —— Property, plant and equipment: valuation and classification of expenses (Note 14) —— Provisions (Note 17) —— Borrowings: measurement bases (Note 18) —— Valuation of derivatives (Note 19) —— Financial risk management – impairment of financial instruments (Note 20) —— Business combinations (Note 25)
02. Summary of significant accounting policies:// Statement of compliance
Basis of preparation
Significant accounting policies, estimates and judgements
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Vector://AR 18
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