New Zealand Gazette – 2006 – No. 142

Page 4125

✨ Financial Performance Measures

20 NOVEMBER 2006

NEW ZEALAND GAZETTE, No. 142

4125

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	5,462,247	a	5,462,247		5,462,247
Operating surplus before interest and income tax adjusted pursuant to regulation 18 (OSBIT)	5,462,247			2,966,611
Interest on cash, bank balances, and short-term investments (ISTI)	2,966,611	n	add	add	add
Net surplus after tax from financial statements	2,966,611		add	add	add
Amortisation of goodwill and amortisation of other intangibles	0	g	add	add	add
Subvention payment	0	s	add	add	add
Depreciation of SFA at BV (x)	4,107,367		add		add
Depreciation of SFA at ODV (y)	4,107,367
ODV depreciation adjustment	0	d		deduct	deduct
Subvention payment tax adjustment:	0	s*1			0
Interest: tax shield	264,699	q			264,699
Revaluations	0	r			0
Income tax	1,693,518	p			1,693,518
Numerator			OSBIT^ADJ = a + g + s + d	NSAT^ALL = n + g + s - s*1 + d	OSBIT^ADJ = a + g + s + r + s + d - p - s*1
Fixed assets at end of previous financial year (FA₀)	105,852,010
Fixed assets at end of current financial year (FA₁)	107,000,933
Adjusted net working capital at end of previous financial year (ANWC₀)	1,017,025
Adjusted net working capital at end of current financial year (ANWC₁)	107,173,385	c	107,173,385		107,173,385
Average total funds employed (ATFE)
Total equity at end of previous financial year (TE₀)	89,155,492
Total equity at end of current financial year (TE₁)	85,622,043
Average total equity	86,888,737	k		86,888,737
WUC at end of previous financial year (WUC₀)	816,228
WUC at end of current financial year (WUC₁)	1,414,169
Average total works under construction	1,115,198	e	deduct	1,115,198	deduct
Revaluations	0	r
Half of revaluations	0	r/2
Intangible assets at end of previous financial year (IA₀)	0
Intangible assets at end of current financial year (IA₁)	0	m	add		add
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	v	add	0
Average subvention payment & related tax adjustment	0
System fixed assets at end of previous financial year at book value (SFA_book0)	104,301,648
System fixed assets at end of current financial year at book value (SFA_book1)	104,895,197
Average value of system fixed assets at book value	104,598,423	f	deduct	104,598,423	deduct
System Fixed assets at year beginning at ODV value (SFA_odv0)	98,120,000
System Fixed assets at end of current financial year at ODV value (SFA_odv1)	100,701,995
Average value of system fixed assets at ODV value	99,410,995	h	add	99,410,995	add
Denominator			ATFE^ADJ = c - e - f + h	Ave TE^ADJ = k - e - m + v - f + h	ATFE^ADJ = c - e - ½r - f + h
Financial Performance Measure:			5.4%	3.7%	3.5%
			ROF = OSBIT^ADJ / ATFE^ADJ x 100	ROE = NSAT^ALL / ATFE^ADJ x 100	ROI = OSBIT^ADJ / ATFE^ADJ x 100

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