✨ Financial Performance Measures
VECTOR LIMITED & SUBSIDIARIES
GAS DISTRIBUTION ACTIVITIES
FINANCIAL AND EFFICIENCY PERFORMANCE MEASURES
FOR THE YEAR ENDED 30 JUNE 2008
| 2008 NZ IFRS¹ | 2007 NZ IFRS¹ | 2006 Previous NZ GAAP | 2005 Previous NZ GAAP | |
|---|---|---|---|---|
| 1 Financial performance measures | ||||
| a (i) Accounting return on total assets (excluding current borrowings in working capital)² | 9.52% | 8.62% | 4.07% | 6.39% |
| a (ii) Accounting return on total assets (including current borrowings in working capital)² | 11.61% | 9.53% | 5.09% | 7.84% |
| b Accounting return on equity | 4.27% | 6.27% | (8.50%) | (13.25%) |
| c (i) Accounting rate of profit (excluding current borrowings from working capital)³ | 6.75% | 6.04% | 310.64% | 2.05% |
| c (ii) Accounting rate of profit (including current borrowings in working capital)⁴ | 8.22% | 6.69% | 413.48% | 2.51% |
| 2 Efficiency performance measures | | | | |
| a Direct line costs per kilometre | $707 | $755 | $846 | $917 |
| b Indirect line costs per gas customer | $116 | $144 | $155 | $140 |
¹ The financial performance ratios have been prepared under NZ IFRS for 2008 and 2007 years, and for the 2007 year are significantly different as compared to the previously disclosed 2007 ratios prepared under prior NZ GAAP. Key reasons for the changes upon the transition to NZ IFRS are:
- Goodwill is not amortised under NZ IFRS. This has resulted in an increase in earnings before interest and tax.
- Software assets classified as property, plant and equipment under previous NZ GAAP are reclassified as intangible assets under NZ IFRS. This reduces fixed assets which therefore reduces average capital employed.
- On transition to NZ IFRS, the Vector group reallocated goodwill to its cash generating units. This resulted in a reduction in the goodwill allocated to the gas distribution business along with a corresponding reduction in equity.
- Deferred tax is calculated using the balance sheet approach under NZ IFRS. This resulted in a decrease in the deferred tax liability and a corresponding increase in equity.
² The regulations are silent on the treatment of amortisation. Earnings before interest and tax is calculated after amortisation. This treatment is consistent with NZ GAAP.
³ Accounting rate of profit (excluding current borrowings from working capital) is 1.59% excluding revaluations.
⁴ Accounting rate of profit (including current borrowings in working capital) is 1.99% excluding revaluations.
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NZ Gazette 2008, No 185
✨ LLM interpretation of page content
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Vector Limited & Subsidiaries Gas Distribution Activities Financial and Efficiency Performance Measures
(continued from previous page)
🏭 Trade, Customs & IndustryFinancial performance, Efficiency measures, Accounting return, NZ IFRS, NZ GAAP, Goodwill, Deferred tax, Earnings before interest and tax, Revaluations