APPENDIX
Financial Statements For the year ended 31 March 2018
NOTE A1: SIGNIFICANT ACCOUNTING POLICIES INDEX Policy
Note
Basis of preparation
1
Principles of consolidation
1
Revenue recognition
2
Generation development
3
Property, plant and equipment
4
Borrowings
9
Share capital
13
Dividend distribution
14
Trade receivables
A7
Trade payables
A8
Cash flow statement
A13
Adoption status of relevant new Financial Reporting Standards and interpretations
A19
Apart from note A18, accounting policies are denoted by the shaded box surrounding them.
NOTE A2: NON-GAAP MEASURES Underlying earnings after tax Note
Profit after tax attributable to the shareholders of the Company Fair value losses / (gains) on financial instruments Adjustments before income tax Adjustments after income tax Underlying earnings after tax
A9
2018 $000
2017 $000
(2,775)
16,371
(1,198)
(7,750)
(1,198)
(7,750)
(3,973)
8,621
Underlying earnings is a non-GAAP (Generally Accepted Accounting Principles) financial measure. Tilt Renewables believes that this measure is an important additional financial measure to disclose as it excludes movements in the fair value of financial instruments which can be volatile year to year depending on movement in long term interest rate and/or electricity future prices. Also excluded in this measure are items considered to be one off and not related to core business such as changes to the Company tax rate or gain/impairment of generation assets. Earnings before interest, tax, depreciation, amortisation, fair value movements of financial instruments and asset impairments (EBITDAF) EBITDAF is a non-GAAP financial measure but is commonly used within the electricity industry as a measure of performance as it shows the level of earnings before the impact of gearing levels and non-cash charges such as depreciation and amortisation. Market analysts use the measure as an input into company valuation and valuation metrics used to assess relative value and performance of companies across the sector.
Annual Report 2018
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