Common use of Annualisation of costs Clause in Contracts

Annualisation of costs. (a) In order to derive fixed recurring charges, costs incurred by the Multiplex Licensee need to be annualised. The total annualised costs will be derived by aggregating all costs incurred by the Multiplex Licensee in relation to the supply of the Multiplex Transmission Service, including the following: (i) the annualised capital expenditure; (ii) the annual operating expenditure; and (iii) the annual corporate overhead expenditure. (b) Capital expenditure will be recovered by annualising these costs over the economic life of the Assets. For the purpose of these pricing principles, the economic life of each of the Assets is to determined in accordance with the following criteria for “radio and television broadcasting equipment” as set out in Table 1 of the Income Tax (Effective Life of Depreciating Assets) Determination 2001: (i) computer automated – 10 years; (ii) general plant – 62/3 years; and (iii) steel masts – 40 years.

Annualisation of costs. (a) In order to derive fixed recurring charges, costs incurred by the Multiplex Licensee need to be annualised. The total annualised costs will be derived by aggregating all costs incurred by the Multiplex Licensee in relation to the supply of the Multiplex Transmission Service, including the following: (i) the annualised capital expenditure; (ii) the annual operating expenditure; and (iii) the annual corporate overhead expenditure. (b) Capital expenditure will be recovered by annualising these costs over the economic life of the Assets. For the purpose of these pricing principles, the economic life of each of the Assets is to determined in accordance with the following criteria for “radio and television broadcasting equipment” as set out in Table 1 of the Income Tax (Effective Life of Depreciating Assets) Determination 2001: (i) computer automated – 10 years; (ii) general plant – 62/3 years; and (iii) steel masts – 40 years.