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New Zealand Gazette – 2005 – No. 5

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✨ Financial Performance Measures

14 JANUARY 2005

NEW ZEALAND GAZETTE, No. 5

131

F 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	20,566
Operating surplus before interest and income tax adjusted pursuant to Requirement 18 (OSBIT1)	20,566
Interest on cash, bank balances, and short-term investments (ISTI)	0
OSBIT minus ISTI	20,566	a	20,566		20,566
Net surplus after tax from financial statements	5,517
Net surplus after tax adjusted pursuant to Requirement 18 (NSAT)	5,517	n		5,517
Amortisation of goodwill and amortisation of other intangibles	0	g	add	rdd	add
Subvention payment	1,290	s	add		1,290
(Depreciation of SFA at BV (x)	9,735
Depreciation of SFA at ODV (y)	5,497
ODV depreciation adjustment	4,238	d	add	4,238	add
Subvention payment tax adjustment	426	s'		deduct	426
Interest tax shield	2,487	q		deduct	2,487
Revaluations	34,264	r		add	34,264
Income tax	7,513	p		deduct	7,512
Numerator			OSBIT(^{adj}) = 26,094	NSAT(^{adj}) = 10,619	OSBIT(^{adj}) - a - g + d - s + d = 49,933
			a + g + s + c	n + r + p ± s' ± x'

| Fixed assets at end of previous financial year (FA(_0)) | 245,484 | |
| Fixed assets at end of current financial year (FA(_1)) | 252,996 | |
| Adjusted net working capital at end of previous financial year (ANWC(_0)) | 1,059 | |
| Adjusted net working capital at end of current financial year (ANWC(_1)) | 1,463 | |
| Average total funds employed (ATFE) | 250,497 | c | 250,497 | 250,497 |
| (For Requirement 32 time-weighted average) | | | |
| Total equity at end of previous financial year (TE(_0)) | 106,314 | |
| Total equity at end of current financial year (TE(_1)) | 115,785 | |
| Average total equity | 111,050 | k | 111,050 | |
| (For Requirement 32 time-weighted average) | | | |
| WUC at end of previous financial year (WUC(_0)) | 5,521 | |
| WUC at end of current financial year (WUC(_1)) | 5,366 | |
| Average total works under construction | 5,444 | e | 5,444 | 5,444 |
| (For Requirement 32 time-weighted average) | | | |
| Revaluations | 34,264 | y | |
| Half of revaluations | 17,132 | t2 | | 17,132 |
| Intangible assets at end of previous financial year (IA(_0)) | 0 | |
| Intangible assets at end of current financial year (IA(_1)) | 0 | |
| Average total intangible asset | | m | | deduct | 0 |
| (Or Requirement 32 time-weighted average) | | | |
| Subvention payment at end of previous financial year (S(_0)) | 1,191 | |
| Subvention payment at end of current financial year (S(1)) | 1,290 | |
| Subvention payment tax adjustment at end of previous financial year | 393 | |
| Subvention payment tax adjustment at end of current financial year | 426 | |
| Average subvention payment and related tax adjustment | 831 | v | | add | 831 |
| System fixed assets at end of previous financial year at book value (SFA({BV0})) | 239,963 | |
| System fixed assets at end of current financial year at book value (SFA({BV1})) | 247,625 | |
| Average value of system fixed assets in book value | 243,794 | f | 243,794 | 243,794 |
| (Or Requirement 32 time-weighted average) | | | |
| System fixed assets at year beginning at ODV value (SFA({ODV0})) | 154,391 | |
| System fixed assets at end of current financial year at ODV value (SFA(_{ODV1})) | 193,833 | |
| Average value of system fixed assets at ODV value | 174,116 | h | 174,116 | add | 174,116 |
| (Or Requirement 32 time-weighted average) | | | |
| Denominator | | ATFE(^{adj}) = 175,375 | Av TE(^{adj}) = 136,759 | ATFE(^{adj}) - c = 168,243 |
| | | c + f + h | k + v + f + h | f + h |

Financial Performance Measure | ROF = OSBIT(^{adj})/ATFE(^{adj}) × 14.9 | ROE = NSAT(^{adj})/Av TE(^{adj}) × 18.6 | ROI = OSBIT(^{adj})/ATFE(^{adj}) × 11.6 |

Maximum statutory income tax rate applying to corporate entities; 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, bv = book value, ave = average, odv = optimised deprival valuation

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