Territory Stories

February 2008 report to the Legislative Assembly

Details:

Title

February 2008 report to the Legislative Assembly

Collection

Report to the Legislative Assembly; Reports; PublicationNT

Date

2008

Description

Made available via the Publications (Legal Deposit) Act 2004 (NT).

Notes

Date:2008-02

Language

English

Subject

Northern Territory. Auditor-General's Office -- Periodicals; Finance, Public -- Northern Territory -- Accounting -- Periodicals; Northern Territory -- Appropriations and expenditures -- Periodicals

Publisher name

Northern Territory Auditor-General's Office

Place of publication

Darwin

ISSN

1323-7128

Copyright owner

Check within Publication or with content Publisher.

Parent handle

https://hdl.handle.net/10070/223559

Citation address

https://hdl.handle.net/10070/686148

Page content

Auditor-General for the Northern Territory February 2008 Report 143 Power and Water Corporation cont Qualification cont The qualification reported within the audit opinion follows: Application of AASB 136 Impairment of Assets as at 30 June 2006 and for the year then ended. Note 11 to the financial statements reports the value of the Corporations and consolidated entitys water system assets at 30 June 2006 as $339.720 million. Accounting Standard AASB 136 Impairment of Assets requires an asset to be written down to its recoverable amount when its carrying value is greater than its recoverable amount. In my opinion, the discount rate applied by the Corporation as at 30 June 2006 was not in accordance with AASB 136 Impairment of Assets. Had the appropriate discount rate been applied in determining the recoverable amount, the value of the Corporations and consolidated entitys water system assets would have been $295.997 million as at 30 June 2006. Had the impairment loss of $43.723 million been applied, the net loss reported for the Corporation and the consolidated entity would have been $23.226 million and $23.204 million respectively. As a result of my inability to form an opinion on the value of the property, plant and equipment assets as at 30 June 2005, the effect on the Income Statement for the financial year ended 30 June 2006 cannot be quantified. As a result of the paragraph above, my opinion in relation to the comparative year ended 30 June 2006 is qualified as: I am of the opinion that the value of the Corporations water system assets were overstated by $43.723 million as at 30 June 2006; and the effect on the profit reported in the Income Statement and the Statement of Changes in Equity for the Corporation and the consolidated entity for the year ended 30 June 2006 cannot be quantified.


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