New Zealand Gazette – 2002 – No. 115

Page 3086

✨ Financial Performance Measures

3086

NEW ZEALAND GAZETTE

No. 115

FORM FOR THE DERIVATION OF FINANCIAL PERFORMANCE MEASURES FROM FINANCIAL STATEMENTS

Derivation Table	Input and Calculations	Symbol in formula	ROF	ROE	ROI
Operating surplus before interest and income tax from financial statements	62,035
Operating surplus before interest and income tax adjusted pursuant to regulation 18 (OSBIT)	62,035
Interest on cash, bank balances, and short-term investments (ISTI)	0	a
OSBIT minus ISTI	62,035		62,035		62,035
Net surplus after tax from financial statements	40,964			40,964
Net surplus after tax adjusted pursuant to regulation 18 (NSAT)	40,964	n	add	add	add
Amortisation of goodwill and amortisation of other intangibles	0	q	add	add	add
Subvention payment	0	s	add	add	add
Depreciation of SFA at BV (v)	15,704
Depreciation of SFA at ODV (v)	15,574
ODV depreciation adjustment	120	d	add	120	add
Subvention payment tax adjustment	0	s*L	deduct	0	deduct
Interest tax shield	-8,588	r	add		add
Income tax	21,871	p	deduct	21,871	deduct
Numerator			OSBIT^ADJ = a + g + s + d	NSAT^ADJ = n + g + s + s*L + d - p + r	OSBIT^ADJ = a + g + q + r + s + d - p + r
			62,755	41,084	34,495
Fixed assets at end of previous financial year (FA₀)	442,006
Fixed assets at end of current financial year (FA₁)	462,104
Adjusted net working capital at end of previous financial year (ANWC₀)	-5,656
Adjusted net working capital at end of current financial year (ANWC₁)	-9,045
Average total funds employed (ATFE)	444,745	c		444,745	444,745
Total equity at end of previous financial year (TE₀)	400,344
Total equity at end of current financial year (TE₁)	418,540
Average total equity	410,942	k		410,942
WUC at end of previous financial year (WUC₀)	14,014
WUC at end of current financial year (WUC₁)	8,495
Average total works under construction	10,255	e	deduct	10,255	deduct
Revaluations	-8,588	f
Half of revaluations	-3,294	n2			deduct
Intangible assets at end of previous financial year (IA₀)	0	m	add	0
Intangible assets at end of current financial year (IA₁)	0
Average total intangible asset	0
Subvention payment at end of previous financial year (S₀)	0
Subvention payment at end of current financial year (S₁)	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	0	v	add	0
System fixed assets at end of previous financial year at book value (SFA_book₀) - incl land	414,881
System fixed assets at end of current financial year at book value (SFA_book₁) - incl land	441,937
Average value of system fixed assets at book value	428,369	f	deduct	428,369	deduct
System Fixed assets at year beginning at ODV value (SFA_ODV₀) - incl land	435,510
System Fixed assets at end of current financial year at ODV value (SFA_ODV₁) - incl land	442,840
Average value of system fixed assets at ODV value	439,175	h	add	439,175	add
Denominator			ATFE^ADJ = c - e - f + h	Ave TE^ADJ = k + e - m + v - f + h	ATFE^ADJ = c + e + ½r + f + h
			445,289	411,454	448,560
Financial Performance Measure:			ROF = OSBIT^ADJ/ATFE^ADJ x 100	ROE = NSAT^ADJ/Ave TE^ADJ x 100	ROI = OSBIT^ADJ/ATFE^ADJ x 100
			14.094	9.985	7.690

1 = maximum statutory income tax rate applying to corporate entities
bv = book value
ave = average
odv = optimised deprecial valuation
subscript "0" = end of the previous financial year
subscript "1" = end of the current financial year
ROF = return on funds
ROE = return on equity
ROI = return on investment

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