New Zealand Gazette – 2006 – No. 143

Page 4144

✨ Financial Performance Measures

SCHEDULE 1 – PART 7

FORM FOR THE DERIVATION OF FINANCIAL PERFORMANCE MEASURES FROM FINANCIAL STATEMENTS

Derivation Table	Financial Performance Measure Formula	ROF	ROE	ROI
Mounted Calculations		in formula
Operating surplus before interest and income tax from financial statements	$ 5,852,329
Operating surplus before interest and income tax adjusted pursuant to regulation 13 (OSBIT)	$ 5,952,329
Interest on cash, bank balances, and short-term investments (ISTI)	- $ 24,366
OSBIT minus ISTI	$ 5,927,963	a
Net surplus after tax from financial statements	$ 2,218,627
Net surplus after tax adjusted pursuant to regulation 18 (NSAT)	$ 2,218,627	n
Amortisation of goodwill and amortisation of other intangibles	0	g	add	0
Subvention payment	0	s	add	0
Depreciation of SFA at BV (x)	- $ 3,764,872
Depreciation of SFA at ODV (y)	$ 3,754,872	d	add
ODV depreciation adjustment	0		deduct	0
Subvention payment tax adjustment	0	s t	add	0
Interest tax shield	$ 372,378	q
Revaluations		r
Income tax	- $ 2,580,918	p
Numerator			OSBIT^(ADJ) = a + g + s + d	NSAT^(ADJ) = n + g + s - p

| Denominator | |
| Fixed assets at end of previous financial year (FAo) | $ 114,502,757 |
| Fixed assets at end of current financial year (FA1) | $ 120,892,018 |
| Adjusted net working capital at end of previous financial year (ANWCo) | $ 2,413,950 |
| Adjusted net working capital at end of current financial year (ANWC1) | $ 2,828,692 |
| Average total funds employed (ATFE) | $ 120,089,540 | c |
| Total equity at end of previous financial year (TEo) | $ 86,050,252 |
| Total equity at end of current financial year (TE1) | $ 87,256,079 |
| Average total equity | $ 86,753,165 | k |
| MWC at end of previous financial year (MWC0) | $ 22,030,762 |
| MWC at end of current financial year (MWC1) | $ 1,829,400 |
| Average total works under construction | $ 1,341,281 | o | deduct | |
| Revaluations | | r | |
| Half of revaluations | 0 | r/2 |
| Intangible assets at end of previous financial year (IAo) | |
| Intangible assets at end of current financial year (IA1) | |
| Average total intangible asset | 0 | m |
| Subvention payment at end of previous financial year (So) | |
| Subvention payment at end of current financial year (S1) | |
| Subvention payment tax adjustment at end of previous financial year | |
| Subvention payment tax adjustment at end of current financial year | |
| Average subvention payment & related tax adjustment | 0 | v |
| System fixed assets at end of previous financial year at book value (SFAobv) | $ 110,589,042 |
| System fixed assets at end of current financial year at book value (SFA1bv) | $ 116,392,653 |
| Average value of system fixed assets at book value | $ 113,490,848 | f |
| System Fixed assets at beginning at ODV value (SFAobv) | $ 110,848,476 |
| System Fixed assets at end of current financial year at ODV value (SFA1odv) | $ 118,190,364 |
| Average value of system fixed asset at ODV value | $ 113,519,420 | l |

| Financial Performance Measure: | | |
| ROF = OSBIT^(AD)/ATFE^(AD) | 5.0 | |
| ROE = NSAT^(AD)/AV TE | 2.6 | |
| ROI = OSBIT^(AD)/ATFE^(AD) | 2.3 | 1.30 |

maximum statutory income tax rate applying to corporate entities
by = book value
ave = average
odv = optimised deprival valuation
subscript 0 = end of the previous financial year
subscript 1 = end of the current financial year

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