New Zealand Gazette – 2005 – No. 19

Page 440

✨ Financial Performance Measures

440

NEW ZEALAND GAZETTE, No. 19

19 JANUARY 2005

SCHEDULE 1 - PART 7
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	7,768,041
Operating surplus before interest and income tax adjusted pursuant to regulation 18 (OSBII)	7,768,041		7,757,608		7,757,608
Interest on cash, bank balances, and short-term investments (IST)	-10,435
OSBII minus ISTI	7,757,608	a
Net surplus after tax from financial statements	4,010,482			4,010,482
Net surplus after tax adjusted pursuant to regulation 18 (NSAT)	4,010,482	n	add	add	add
Amortisation of goodwill and amortisation of other intangibles	0	g	add	0	0
Subvention payment	0	s	add	0	0
Depreciation of SFA at BV (x)	3,093,161	d	add	0	add
Depreciation of SFA at ODV (y)	3,093,161				0
ODV depreciation adjustment	0	d'			deduct
Subvention payment tax adjustment	0	s'			0
Interest tax shield	322,972	q			322,972
Revaluations	12,735,748	r			12,735,748
Income tax	2,769,421	p			2,769,421
Numerator			7,757,608	4,010,482	17,491,961
			OSBII^ADJ = a + g + s + d	NSAT^ADJ = n + g + s' + d' + q	OSBII^ADJ - a - g - q + r + s + d - p - s' + q
Fixed assets at end of previous financial year (FA₀)	94,409,136
Fixed assets at end of current financial year (FA₁)	110,035,713
Adjusted net working capital at end of previous financial year (ANWC₀)	2,682,834
Adjusted net working capital at end of current financial year (ANWC₁)	2,051,653
Average total funds employed (ATFE)	104,594,669	c	104,594,669		104,594,669
Total equity at end of previous financial year (TE₀)	68,190,563			75,994,328
Total equity at end of current financial year (TE₁)	83,799,093
Average total equity	75,994,328	k		75,994,328
WUC at end of previous financial year (WUC₀)	1,801,363
WUC at end of current financial year (WUC₁)	735,588
Average total works under construction	1,268,466	e	deduct	1,268,466	deduct
Revaluations	12,735,748	r			6,367,874
Half of revaluations	6,367,874	r/2
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	add	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 (SFA₀,bv)	88,932,726
System fixed assets at end of current financial year at book value (SFA₁,bv)	106,541,997
Average value of system fixed assets at book value	97,608,508	f	deduct	97,608,508	deduct
System fixed assets at year beginning at ODV value (SFA₀,odv)	90,603,564
System fixed assets at end of current financial year at ODV value (SFA₁,odv)	106,569,140
Average value of system fixed assets at ODV value	98,585,852	h	add	98,585,852	add
Denominator			104,303,547	75,703,206	37,505,873
			ATFE^ADJ = c - e - r/2 + h	Ave TE^ADJ = k - e - r/2 - f + h	ATFE^ADJ - c - e - r/2 - f + h
Financial Performance Measure:			7.4	5.3	17.8
			ROF = OSBII^ADJ / ATFE^ADJ x 100	ROE = NSAT^ADJ / Ave TE^ADJ x 100	ROI = OSBII^ADJ / ATFE^ADJ x 100

1 = maximum statutory income tax rate applying to corporate entities bv = book value ave = average odv = optimised depreciated 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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