Annual Report 2011 - Watercare

Watercare Services Limited
2011 ANNUAL REPORT
Notes to the financial statements (continued)
for the year ended 30 June 2011
12. Revaluation Reserves
group and Company Company
2011 2010
$000 $000
Balances at beginning of year 1,071,655 1,043,205
Asset impairment – net of tax - (390)
Tax rate adjustment (30% to 28%) - 29,761
Revaluation – net of deferred tax 361,873 -
Transferred to retained earnings on disposal of property, plant and equipment – net of tax (3,909) (921)
Total revaluation reserves 1,429,619 1,071,655
Comprising:
Land 48,517 47,163
Buildings 31,953 33,319
Pipelines 844,715 569,176
Tanks, tunnels, roads and reservoirs 281,705 266,364
Dams 79,171 69,940
Machinery 143,558 85,693
Total revaluation reserves 1,429,619 1,071,655
Analysis:
Land
Balances at beginning of year 47,163 47,163
Revaluation 1,354 -
Total land revaluation reserves 48,517 47,163
Buildings
Balances at beginning of year 33,319 32,341
Tax rate adjustment (30% to 28%) - 967
Revaluation (1,080) -
Transferred to retained earnings on disposal of property, plant and equipment – net of tax (286) 11
Total buildings revaluation reserves 31,953 33,319
Pipelines
Balances at beginning of year 569,176 553,167
Asset impairment - (557)
Tax rate adjustment (30% to 28%) - 16,540
Revaluation 277,625 -
Deferred tax on asset impairment - 167
Transferred to retained earnings on disposal of property, plant and equipment – net of tax (2,086) (141)
Total pipelines revaluation reserves 844,715 569,176
Tanks, tunnels, roads and reservoirs
Balances at beginning of year 266,364 258,630
Tax rate adjustment (30% to 28%) - 7,735
Revaluation 13,556 -
Transferred to retained earnings on disposal of property, plant and equipment – net of tax 1,785 (1)
Total tanks, tunnels, roads and reservoirs revaluation reserves 281,705 266,364
Dams
Balances at beginning of year 69,940 67,941
Tax rate adjustment (30% to 28%) - 2,032
Revaluation 9,235 -
Reclassification - (33)
Transferred to retained earnings on disposal of property, plant and equipment – net of tax (4) -
Total dams revaluation reserves 79,171 69,940
2011 Financial Report
PAGE 88
Machinery
Balances at beginning of year 85,693 83,963
Tax rate adjustment (30% to 28%) - 2,487
Revaluation 61,183 -
Reclassification - 33
Transferred to retained earnings on disposal of property, plant and equipment – net of tax (3,318) (790)
Total machinery revaluation reserves 143,558 85,693
The revaluation reserve arises on the revaluation of property, plant and equipment. Where revalued property, plant and equipment are sold,
the portion of the revaluation reserve that relates to that asset, and is effectively realised, is transferred directly to retained earnings.
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