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New Zealand Gazette – 2008 – No. 3

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✨ Financial Performance Measures

74

NEW ZEALAND GAZETTE, No. 3

11 JANUARY 2008

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	26,696
Operating surplus before interest and income tax adjusted pursuant to Requirement 18 (OSBIT)	26,696
Interest on cash, bank balances, and short-term investments (ISTI)	0
OSBIT minus ISTI	26,696	A	26,696		26,696
Net surplus after tax from financial statements	11,782
Net surplus after tax adjusted pursuant to Requirement 18 (NSAT)	11,782	n		11,782
Amortisation of goodwill and amortisation of other intangibles	0	g	add 0	add 0	add 0
Subvention payment	1,486	s	add 1,486	add 1,486	add 1,486
Depreciation of SFA at BV (x)	10,230
Depreciation of SFA at ODV (y)	5,877
ODV depreciation adjustment	4,353	d	add 4,353	add 4,353	add 4,353
Subvention payment tax adjustment	490	s*t		deduct 490	deduct 490
Interest tax shield	2,566	q			deduct 2,566
Revaluations	0	r			add 0
Income tax	7,138	p			deduct 7,138
Numerator			32,535	17,131	22,341
			OSBIT^ADJ = a + g + s + d	NSAT^ADJ = n + g + s - s*t + d	OSBIT^ADJ = a + g - q + r + s + d - p - s*t


Fixed assets at end of previous financial year (FA₀)	309,834
Fixed assets at end of current financial year (FA₁)	315,647
Adjusted net working capital at end of previous financial year (ANWC₀)	(890)
Adjusted net working capital at end of current financial year (ANWC₁)	(494)
Average total funds employed (ATFE)	312,049	c	312,049		312,049
	(or Requirement 32 time-weighted average)
Total equity at end of previous financial year (TE₀)	170,405
Total equity at end of current financial year (TE₁)	175,997
Average total equity	173,201	k		173,201
	(or Requirement 32 time-weighted average)
WUC at end of previous financial year (WUC₀)	10,209
WUC at end of current financial year (WUC₁)	5,640
Average total works under construction	7,925	e	deduct 7,925	deduct 7,925	deduct 7,925
	(or Requirement 32 time-weighted average)
Revaluations	0	r
Half of revaluations	0	r/2		deduct	0
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		deduct 0
	(or Requirement 32 time-weighted average)
Subvention payment at end of previous financial year (S₀)	1,430
Subvention payment at end of current financial year (S₁)	1,486
Subvention payment tax adjustment at end of previous financial year	472
Subvention payment tax adjustment at end of current financial year	490
Average subvention payment and related tax adjustment	977	v		add 977
System fixed assets at end of previous financial year at book value (SFA_bv0)	299,621
System fixed assets at end of current financial year at book value (SFA_bv1)	310,004
Average value of system fixed assets at book value	304,813	f	deduct 304,813	deduct 304,813	deduct 304,813
	(or Requirement 32 time-weighted average)
System fixed assets at year beginning at ODV value (SFA_odv0)	207,286
System fixed assets at end of current financial year at ODV value (SFA_odv1)	212,681
Average value of system fixed assets at ODV value	209,984	h	add 209,984	add 209,984	add 209,984
	(or Requirement 32 time-weighted average)
Denominator			209,295	71,424	209,295
			ATFE^ADJ = c - e - f + h	Ave TE^ADJ = k - e - m + v - f + h	ATFE^ADJ = c - e - \frac{1}{2}r - f + h

Financial Performance Measure			15.5	24.0	10.7
			ROF = OSBIT^ADJ/ATFE^ADJ x 100	ROE = NSAT^ADJ/ATE^ADJ x 100	ROI = OSBIT^ADJ/ATFE^ADJ x 100

t = 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

LexisNexis

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