Notes to the financial statements (continued) Section 2: Profit for the reporting years presented (continued) 5. Expenses (continued) C. Other expenses i. Amounts recognised in profit or loss See table 6 below. ii. Accounting policy: lease costs The below expenses are recognised as ‘lease costs’ in profit or loss on a straight-line basis over the period of the lease: • expenses relating to short-term leases • expenses relating to leases of low-value assets • other expenses not captured as lease liabilities under AASB 16 Leases – including variable and termination lease payments. Short-term leases are leases with a lease term of 12 months or less. Low-value leases are for assets individually valued at less than $5,000. During the reporting year ended 30 June 2025, lease costs were $0.314 million (30 June 2024: $0.125 million).
6. Net finance costs A. Accounting policy
Net finance costs comprises interest expense largely on borrowings, net of interest income on funds invested. Finance costs directly attributed to the acquisition, construction or production of qualifying assets (being assets that take in excess of 12 months to be ready for their intended use, and whose estimated cost is more than $5 million) are capitalised to form part of the cost of that asset. All other finance costs are expensed in the reporting years in which they are incurred. ‘Net finance costs paid’ in the statement of cash flows is prior to the effect of capitalisation. B. Amounts recognised in profit or loss See table 7 below. i. Capitalised finance costs For the reporting year ended 30 June 2025, the weighted average interest rate used to capitalise finance costs was 4.5 percent (30 June 2024: 4.3 percent). These costs are directly attributable to the construction, acquisition or production of a qualifying asset that takes in excess of 12 months to complete and where costs are estimated to be in excess of $5 million.
Table 6: Amounts recognised in profit or loss
2024/25 $M
2023/24 $M
Note
(197) - (16) (23) -
(230) (25) (21) (4) (1) - (1) (282)
28(b) 11(d) 17(c)(i)
Tariff equalisation contribution Impairment of plant and equipment Insurance Net loss on disposal of property, plant and equipment Impairment of trade receivables Remuneration of auditors Other
(1) (1)
(238)
Table 7: Amounts recognised in profit or loss
2024/25 $M
2023/24 $M
Note
Finance income Interest Finance costs Domestic currency loans not at fair value through profit or loss Fair value loss on cash flow hedges Interest rate swaps Finance lease interest Capitalised finance costs
9
1 (319) (10) 14 (1) 10 (306) (305)
(350) (9) 14 (2) 12 (335) (326)
6(b)(i)
Net finance costs
94
Western Power Annual Report 2025
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