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notes to the financial Statements
for the year ended 31 March 2012
For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units
expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been
allocated are tested for impairment annually, or more frequently when there is an indication that the unit
may be impaired. The recoverable amount is the higher of fair value less cost to sell and value in use. If the
recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment
loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other
assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. An impairment loss
recognised for goodwill is not reversed in a subsequent period.
On disposal of a subsidiary or a jointly controlled entity, the attributable amount of goodwill is included in the
determination of the profit or loss on disposal.
l) Property, plant and equipment
Network distribution system
Network distribution system assets held for use are stated in the consolidated balance sheet at their fair
values. Fair values are determined based on valuations adjusted for subsequent purchase costs, disposals,
depreciation and impairment. Revaluations are performed with sufficient regularity such that the carrying
amount does not differ materially from that which would be determined using fair values at balance date.
Any revaluation increase arising on the revaluation of network distribution system assets is credited to the
network revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset
previously recognised in profit or loss, in which case the increase is credited to profit or loss to the extent of the
decrease previously charged. A decrease in carrying amount arising on the revaluation of such assets is charged
to profit or loss to the extent that it exceeds the balance, if any, held in distribution system assets revaluation
reserve relating to a previous revaluation of that asset.
Meter and relay assets
Meter and relay assets held for use are stated at their revalued amounts, being the fair value at the date of
revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Revaluations are performed with sufficient regularity such that the carrying amount does not differ materially
from that which would be determined using fair values at balance date.
Any revaluation increase arising on the revaluation of meter and relay assets is credited to the meter and relay
revaluation reserve, except to the extent that it reverses a revaluation decrease for the same asset previously
recognised in profit or loss, in which case the increase is credited to profit or loss to the extent of the decrease
previously charged. A decrease in carrying amount arising on the revaluation of such assets is charged to profit
or loss to the extent that it exceeds the balance, if any, held in the meter and relay assets’ revaluation reserve
relating to a previous revaluation of that asset.
Gifted assets
Property, plant and equipment gifted to the network, such as electricity reticulation of subdivisions, or cash
received from customers to connect the customer to the network and to provide on-going network services,
are recognised as revenue in the financial year in which the gifted asset is received.
Land and buildings
Land and buildings held for use in the production or supply of goods or services, or for administrative purposes,
are stated at their revalued amounts, being the fair value at the date of revaluation, less any subsequent
accumulated depreciation and subsequent accumulated impairment losses. Revaluations are performed
with sufficient regularity such that the carrying amount does not differ materially from that which would be
determined using fair values at balance date.
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