After posting today’s newsletter & the story on the Government’s annual accounts, I had another hunt for the revaluations – check below.
Treasury said the $19 billion increase in property, plant & equipment was across a number of classes such as state highways, the rail network, housing & electricity generation assets, mainly from additions & revaluations.
The largest gains, with Treasury comments:
- The value of state highways (including land) increased by $5.5 billion, mainly reflecting the continued valuation improvements, the development of new state highway assets & improvements to existing state highway network
- The rail network increased by $5.2 billion, mainly owing to the network now being valued as a public benefit asset (in the detail of revaluations, the increase is given as $5.3 billion)
- The housing portfolio managed by Housing NZ Corp increased by $1.7 billion, of which $1.2 billion relates to an increase in houses, with the remainder of the increase owing to revaluation uplifts
- Electricity generation assets increased by $1.4 billion, mainly due to changes in the assumptions used in the valuations of these assets.
The rail revaluations comprised:
- Reversal of prior year impairments that impacts OBEGAL (operating balance before gains & losses), $2.6 billion
- Increase in the revaluation reserves that impacts net worth, $2.3 billion
- Other movements (eg, additions & disposals), $400 million.
Treasury, 8 October 2019: Government annual financial statement
Attribution: Government accounts.