February 2008 report to the Legislative Assembly
Report to the Legislative Assembly; Reports; PublicationNT
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Northern Territory. Auditor-General's Office -- Periodicals; Finance, Public -- Northern Territory -- Accounting -- Periodicals; Northern Territory -- Appropriations and expenditures -- Periodicals
Northern Territory Auditor-General's Office
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Auditor-General for the Northern Territory February 2008 Report 145 Power and Water Corporation cont Qualification cont The Corporations Income Statement for the year ended 30 June 2007 recorded an impairment loss of $146.4 million. In essence that loss signified that the recoverable amount (the value of the cash flows that the assets were expected to generate over their remaining useful lives) of some classes of the Corporations fixed assets had declined below their carrying amounts by the amount in question. The decline in the values of the Corporation can be traced to an earlier Government decision to freeze the Corporations tariffs with the result that growth in revenues was limited to growth in the customer base, while the Corporation was required to absorb the full effect of increases in input costs over the same period. This led to a constriction upon operating cash flows and constraints upon the Corporations investment program. In 2007 the Government approved tariff increases for the Corporation. The increased revenues are expected to stabilise cash flows and prevent further declines in the value of the Corporation. Validity of property, plant and equipment A comprehensive asset stocktake had not been performed by the Corporation for several years. A stocktake and useful life assessment of assets is being currently being performed and I intend to audit any changes identified.
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