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notes to the financial Statements
for the year ended 31 March 2012
Any revaluation increase arising on the revaluation of such land and buildings is credited to the land and
building 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 land and
buildings is charged to profit or loss to the extent that it exceeds the balance, if any, held in the properties
revaluation reserve relating to a previous revaluation of that asset.
Depreciation on revalued buildings is charged to profit or loss. On the subsequent sale or retirement of a
revalued property, the attributable revaluation surplus remaining in the properties revaluation reserve is
transferred directly to retained earnings. No depreciation is charged on land.
Plant and vehicles
Plant and vehicles are stated at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is charged so as to write off the cost or valuation of assets, other than land and properties under
construction, over their estimated useful lives, using the straight-line method.
The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined
as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit
loss.
Estimated useful lives
The following estimated useful lives are used in the calculation of depreciation. The estimated useful lives,
residual values and depreciation method are reviewed at the end of each reporting period.
Distribution System 5 – 60 years
5 - 60 yrs
straight-line
Buildings 40 – 100 years
40 - 100 yrs
straight-line
Meters & Relays 15 years
4 - 15 yrs
straight-line
Plant & Vehicles 1 – 10 years
1 - 10 yrs
straight-line
m) Financial assets and liabilities, derivatives and hedge accounting
Financial assets
Loans and receivables
Trade receivables, loans and other receivables are recorded at amortised cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid
investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of
changes in value. Bank overdrafts are shown within borrowings in current liabilities in the consolidated balance
sheet.
Impairment of financial assets
Financial assets, other than those at “fair value through profit and loss” (FVTPL), are assessed for indicators of
impairment at each balance sheet date. Financial assets are impaired where there is objective evidence that, as
a result of one or more events that occurred after the initial recognition of the financial asset, the estimated
future cash flows of the investment have been impacted.
For unlisted shares classified as “available for sale” (AFS), a significant or prolonged decline in the fair value of
the security below its cost is considered to be objective evidence of impairment.
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