New Zealand Gazette – 2005 – No. 18

Page 416

✨ Financial Performance Measures

MARLBOROUGH LINES LIMITED - LINES BUSINESS

FORM FOR THE DERIVATION OF FINANCIAL PERFORMANCE MEASURES FROM FINANCIAL STATEMENTS

Derivation Table	Input and Calculations	Formula in NZIFRS	ROI¹	ROE	ROI
Operating surplus before interest and income tax from financial statements	2,271
Operating surplus before interest and income tax adjusted pursuant to requirement 18 (OSBIIT)	2,271
Interest on cash, bank balances, and short-term investments (ISTI)	378
OSBIIT minus ISTI	1,893	a	1,893		1,893
Net surplus after tax from financial statements	1,112
Net surplus after tax adjusted pursuant to requirement 18 (NSAT)	1,112	n		1,112
Amortisation of goodwill and amortisation of other intangibles	0	g	add 0	add 0	add 0
Subvention payment	0	s	add	add	add
Depreciation of SFA at BV (x)	3,794
Depreciation of SFA at ODV (y)	3,847
ODV depreciation adjustment	-53	d	add	-53	add -53
Subvention payment tax adjustment	0	s¹
Interest tax shield	-125	q			deduct -125
Revaluations	22,483	r		add 22,483
Income tax	1,159	p		deduct 1,159
Numerator			1,840	1,059	23,289

| Fixed assets at end of previous financial year (FA₀) | 18,971 | | | | |
| Fixed assets at end of current financial year (FA₁) | 114,660 | | | | |
| Adjusted net working capital at end of previous financial year (ANWC₀) | 662 | | | | |
| Adjusted net working capital at end of current financial year (ANWC₁) | 325 | | | | |
| Average total funds employed (ATFE) | 67,309 | c | 67,309 | | 67,309 |
| Total equity at end of previous financial year (TE₀) | 23,984 | | | | |
| Total equity at end of current financial year (TE₁) | 115,604 | | | | |
| Average total equity | 69,794 | k | | 69,794 | |
| WUC at end of previous financial year (WUC₀) | 383 | | | | |
| WUC at end of current financial year (WUC₁) | 585 | | | | |
| Average total works under construction | 484 | c | deduct 484 | deduct 484 | deduct 484 |
| Revaluations | 22,483 | r | | | |
| Half of revaluations | 11,241 | r/2 | | | deduct 11,241 |
| Intangible assets at end of previous financial year (IA₀) | 0 | | | | |
| Intangible assets at end of current financial year (IA₁) | 0 | | | | |
| Average total intangible asset | 0 | m | | deduct | |
| 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 | |
| System fixed assets at end of previous financial year at book value (SFAbv₀) | 15,539 | | | | |
| System fixed assets at end of current financial year at book value (SFAbv₁) | 108,037 | | | | |
| Average value of system fixed assets at book value | 61,788 | f | | deduct 61,788 | deduct 61,788 |
| System Fixed assets at year beginning at ODV value (SFAodv₀) | 76,992 | | | | |
| System Fixed assets at end of current financial year at ODV value (SFAodv₁) | 100,396 | | | | |
| Average value of system fixed assets at ODV value | 88,694 | h | add 88,694 | add 88,694 | add 82,490 |

| Denominator | | ATFE(ADJ) c+f+h | ATE(ADJ) = k+m+v-r/2 | ATFA(ADJ) c+e-f+h |
| | | 93,731 | 96,216 | 82,490 |

Financial Performance Measure:

| | ROI = OSBIIT(ADJ)/ATFE(ADJ) | ROE = NSAT(ADJ)/ATE(ADJ) | ROI = OSEBIT(ADJ)/ATFA(ADJ) |
| | 1.96 | 1.10 | 28.23 |

1 Maximum statutory income tax rate applying to corporate entities.
BV = book value ave = average
ODV = optimised deprival valuation
Previous year subscribe ‘0’ = end of the previous financial year, subscribe ‘1’ = end of the current financial year
ROF = return on funds ROE = return on equity ROI = return on investment

Note: In 2004, Marlborough Lines changed its accounting policy in respect of the recognition of distribution assets vested from consumers, crediting the fair value of these assets together with capital contributions received to the Statement of Financial Performance. The derivation table has been calculated using opening balances that have not been adjusted for this change in accounting policy.

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