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New Zealand Gazette – 2000 – No. 120

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✨ Financial Performance Measures

1 SEPTEMBER

NEW ZEALAND GAZETTE

3053

SCHEDULE 1 – PART 7

FORM FOR THE DERIVATION OF FINANCIAL PERFORMANCE MEASURES FROM FINANCIAL STATEMENTS

Derivation Table	Input and Calculations	Special In Formula	ROE	ROS	ROI
Operating surplus before interest and income tax from financial statements	2,388,321
Operating surplus before interest and income tax adjusted pursuant to regulation 18 (OSBIT)	2,388,321
Interest on cash, bank balances, and short-term investments (ISTI)	0
OSBIT minus ISTI	2,388,321	a	2,388,321
Net surplus after tax from financial statements	1,177,422
Net surplus after tax adjusted pursuant to regulation 18 (NSAT)	1,177,422	n		add	1,177,422
Amortisation of goodwill and amortisation of other intangibles	0	g	add	d	add
Subvention payment	0	s	add	add	add
Depreciation of SFA at BV (i)	2,367,632	i
Depreciation of SFA at ODV (j)	2,367,932	j
ODV depreciation adjustment	0	d1	add	e	add
Subvention payment tax adjustment	0	q
Income tax shield	3,054	q1	add
Revaluations	4,921,577	r
Income tax	1,198,978	p			deduct
Numerator			OSBIT(a) = a	NSAT(n) = n + g + s	OSBIT(a) = a + q + r + d + p - i
				OSBIT = 2,388,321	NSAT = 1,177,423
Fixed assets at end of previous financial year (FAo)	85,288,988
Fixed assets at end of current financial year (FAc)	85,222,450
Adjusted net working capital at end of previous financial year (ANWCc)	-1,345,366
Adjusted net working capital at end of current financial year (ANWCo)	76,070
Average total funds employed (ATFE)	84,263,010	c		64,289,010
(or regulation 33 time-weighted averages)
Total equity at end of previous financial year (TEo)	65,503,863
Total equity at end of current financial year (TEc)	58,405,726
Average total equity	58,170,556	k		58,170,556
(or regulation 33 time-weighted averages)
WUC at end of previous financial year (WUCo)	251,245
WUC at end of current financial year (WUCc)	278,467
Average total works under construction			deduct	176,446	deduct
(or regulation 33 time-weighted averages)
Revaluations	4,921,577	r1
Net of revaluations	-2,485,789	r2		deduct	-2,485,789
Intangible assets at end of previous financial year (IAo)	0
Intangible assets at end of current financial year (IAc)	0
Average total intangible asset		m		add
(or regulation 33 time-weighted average)
Subvention payment at end of previous financial year (So)	0
Subvention payment at end of current financial year (Sc)	0
Subvention payment tax adjustment at end of previous financial year	0
Subvention payment tax adjustment at end of current financial year	0
Average subvention payment & related tax adjustment		v
System fixed assets at end of previous financial year at book value (SFAo)	81,604,319
System fixed assets at end of current financial year at book value (SFAc)	81,820,662
Average value of system fixed assets at book value	61,716,651	f		61,716,651	deduct
(or regulation 33 time-weighted average)
System fixed assets at year beginning at ODV value (SFAoODV)	81,804,319
System fixed assets at end of current financial year at ODV value (SFAcODV)	81,632,585
Average value of system fixed assets at ODV value	61,715,854	h	add	61,715,854	add
(or regulation 33 time-weighted average)
Denominator		ATFE = c - f + h	Ave TE = k - r2	ATFE = c - f + h
		ATFE = 84,263,456	Ave TE = 57,684,767	ATFE = 83,274,203

Financial Performance Measures:

ROE = OSBIT^(a) / ATFE^(c) × 100 = 3.77
ROE = NSAT^(n) / Ave TE^(k) × 100 = 2.02
ROI = OSBIT^(a) / ATFE^(c) × 100 = 5.6

l = municipal statutory income tax rate applying to corporate entities (subject to “c” at end of the current financial year).
lw = book value.
ave = average.
odv = optimised deprival valuation.
ROE = return on funds.
ROE = return on equity.
ROI = return on investment.

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