Page 80 - Statement of Intent 2015/16

reverses previous surpluses and is otherwise recognised as an expense in the statement of comprehensive income.
Additions to property, plant and equipment between valuations are recorded at cost.
Property that is being constructed or developed for future use as investment property is classified as property, plant and equipment and stated at cost until construction or development is complete, at which time it is reclassified as investment property.
Where material parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate components of property, plant and equipment.
Property, Plant and Equipment Vested from the Hospital and Health Service
Under section 95(3) of the New Zealand Public Health and Disability Act 2000, the assets of Health Waikato Limited (a Hospital and Health Service company) vested in Waikato DHB on 1 January 2001. The assets were transferred to Waikato DHB at their net book values as recorded in the books of the Hospital and Health Service. In effecting this transfer, the Waikato DHB has recognised the cost and accumulated depreciation amounts from the records of the Hospital and Health Service. The vested assets will continue to be depreciated over their remaining useful lives.
Disposal of Property, Plant and Equipment
Where an item of property, plant and equipment is disposed of, the gain or loss recognised in the statement of comprehensive income is calculated as the difference between the net sales price and the carrying amount of the asset.
Leased assets
Leases where Waikato DHB assumes substantially all the risks and rewards of ownership are classified as finance leases. The assets acquired by way of finance lease are stated at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation and impairment losses.
Property, plant and equipment held under finance leases and leased out under operating leases are classified as investment property and stated at fair value. Property, plant and equipment leased under operating leases that would otherwise meet the definition of investment property may be classified as investment property on a property-by-property basis.
Page | 80