Abstract
The goal of this project was to develop a model (income statement, balance sheet and financing budget) for calculating a financial situation of a municipality-owned energy utility. The project also determines how to move to the new calculation method and how the profit from the energy utility to the municipality should be defined. The main features of the calculation model developed for a municipality owned utility correspond to the accounting principles of limited companies with the exceptions that share capital corresponds to utility capital and dividend corresponds to return on utility capital. Connection to the budget of the municipality is obtained through the municipality`s profit demands to the energy utility. The problem greater than the principles of the calculation method is, however, how to move to the new model, i.e., how assets should be valued and how the investment of the municipality in the energy utility should be determined. The municipality`s investment in an energy utility is determined by the cash flow based on revenues and expenses incurred in the past according to the cost price principle. The investment indicated by the cash flow is divided in the opening balance sheet into utility capital and debt in such a manner
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Citation Formats
None.
Model for calculating a financial situation of a municipality-owned energy utility. Final report; Energialaitoksen todellisen tuloksen laskenta; Loppuraportti.
Finland: N. p.,
1993.
Web.
None.
Model for calculating a financial situation of a municipality-owned energy utility. Final report; Energialaitoksen todellisen tuloksen laskenta; Loppuraportti.
Finland.
None.
1993.
"Model for calculating a financial situation of a municipality-owned energy utility. Final report; Energialaitoksen todellisen tuloksen laskenta; Loppuraportti."
Finland.
@misc{etde_10135874,
title = {Model for calculating a financial situation of a municipality-owned energy utility. Final report; Energialaitoksen todellisen tuloksen laskenta; Loppuraportti}
author = {None}
abstractNote = {The goal of this project was to develop a model (income statement, balance sheet and financing budget) for calculating a financial situation of a municipality-owned energy utility. The project also determines how to move to the new calculation method and how the profit from the energy utility to the municipality should be defined. The main features of the calculation model developed for a municipality owned utility correspond to the accounting principles of limited companies with the exceptions that share capital corresponds to utility capital and dividend corresponds to return on utility capital. Connection to the budget of the municipality is obtained through the municipality`s profit demands to the energy utility. The problem greater than the principles of the calculation method is, however, how to move to the new model, i.e., how assets should be valued and how the investment of the municipality in the energy utility should be determined. The municipality`s investment in an energy utility is determined by the cash flow based on revenues and expenses incurred in the past according to the cost price principle. The investment indicated by the cash flow is divided in the opening balance sheet into utility capital and debt in such a manner that the interests of the municipality are taken into account and that the financial structure of the energy board remains sound}
place = {Finland}
year = {1993}
month = {Dec}
}
title = {Model for calculating a financial situation of a municipality-owned energy utility. Final report; Energialaitoksen todellisen tuloksen laskenta; Loppuraportti}
author = {None}
abstractNote = {The goal of this project was to develop a model (income statement, balance sheet and financing budget) for calculating a financial situation of a municipality-owned energy utility. The project also determines how to move to the new calculation method and how the profit from the energy utility to the municipality should be defined. The main features of the calculation model developed for a municipality owned utility correspond to the accounting principles of limited companies with the exceptions that share capital corresponds to utility capital and dividend corresponds to return on utility capital. Connection to the budget of the municipality is obtained through the municipality`s profit demands to the energy utility. The problem greater than the principles of the calculation method is, however, how to move to the new model, i.e., how assets should be valued and how the investment of the municipality in the energy utility should be determined. The municipality`s investment in an energy utility is determined by the cash flow based on revenues and expenses incurred in the past according to the cost price principle. The investment indicated by the cash flow is divided in the opening balance sheet into utility capital and debt in such a manner that the interests of the municipality are taken into account and that the financial structure of the energy board remains sound}
place = {Finland}
year = {1993}
month = {Dec}
}