Annual Report 2021–2022, Power and Water Corporation
Tabled Paper 708
Tabled Papers for 14th Assembly 2020 -; Tabled Papers; ParliamentNT
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Legislative Assembly of the Northern Territory
Legislative Assembly of the Northern Territory
Annual Report 2021-2022 71 Page 20 of 60 Power and Water Corporation Notes to the financial statements for the year ended 30 June 2022 1 General information 2 Significant accounting policies 2.1 Basis of preparation Compliance with IFRS Going concern (i) (ii) Funding sources (iii) Compliance with debt covenants (iv) The continuity of key customers and suppliers (v) The impact of current economic conditions (vi) Forward forecasts and budgets. Power and Water Corporation (the Corporation) is a government owned corporation domiciled in Australia. The consolidated financial report of the Corporation for the year ended 30 June 2022 comprises the Corporation and its subsidiary as disclosed in Note 11. These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations and the Government Owned Corporations Act 2001 . The Government Owned Corporations Act 2001 requires the financial statements of the Corporation and the consolidated entity to comply with the requirements of the Corporations Act 2001 . The Corporation is a for-profit entity for the purpose of preparing these general purpose financial statements, therefore any accounting policy differences arising from IES Pty Ltd (a not-for-profit entity) are adjusted on consolidation. The consolidated financial statements also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The Financial Report was authorised for issue by the Directors on 29 September 2022. This note provides a list of the significant accounting policies adopted in the preparation of these consolidated financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements for the consolidated entity consist of Power and Water Corporation and its subsidiaries. The financial statements have been prepared on the historical cost basis, except for the revaluation of certain property, plant and equipment and financial instruments that are measured at revalued amounts or fair value at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair values of the consideration given in exchange for goods and services. The consolidated entity is of a kind referred to in the Australian Securities and Investment Commission (ASIC) instrument 2016/191 (for rounding in Financial/Directors reports), issued by ASIC, in relation to rounding off. Amounts in this report have been rounded off in accordance with that ASIC instrument to the nearest thousand dollars, or in certain cases the nearest dollar. The consolidated entity is principally engaged in the provision of electricity distribution, electricity retail and generation services, water and sewerage services to customers across the Northern Territory. The consolidated entity also sells gas to a number of customers across Australia. Further information of the nature of the operations and principal activities of the consolidated entity is provided in the Director's report. Information on other related parties are provided in Note 30. The Corporation has carried out an assessment of the going concern assumption. This includes assessing: Forward cash flow projections The financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. The accounting standards require Directors to make disclosures about the existence and the nature of material uncertainties that lead to significant doubts about going concern. For the year ended 30 June 2022, the Corporation made a net profit after tax of $59.4 million (2021: loss after tax of $7.2 million). The Corporation is forecast to be profitable across the four year budget period as reported in the most recent Statement of Corporate Intent (SCI). Although the Corporation's current liabilities for the current year exceed its current assets by $210.7 million (2021: $144.0 million), this is due to the debt maturity profile of the Corporation. All debt maturing in the next financial year, and in subsequent years of the SCI period is anticipated to the extent required, to be replaced by new long term debt. Combined with the above improvement in the working capital ratio, the Corporation operating cash flows and underlying EBITDA remain positive, consistent with prior periods. There has been no material changes to funding sources for the consolidated entity, and there continues to be a strong relationship with key customers and suppliers. Based on the above assessment performed, there are no material uncertainties that cast significant doubt about the Corporation's ability to continue as a going concern. Financial Statements for the year ended 30 June 2022
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