Quote Originally Posted by Snoopy View Post
The above is an issue I have documented on the changing treatment of the Taranaki Combined Cycle power station at Stratford in year to year accounts.

There will be other issues regarding actual changes in the asset portfolio going forwards. Negotiations were well advanced (subsequently concluded) on the sale by Contact of the 'Rockgas' retail LPG supply business and the 'Ahuroa' gas storage facility. This raises the question: Should I try to 'back out' the associated free cashflows of both of these business units in my 10 year operating cashflow picture above? The rationale for doing this is that if I am using my 'free cashflow' table that I have generated above as a forecasting tool for future dividends, would it not be sensible to take out the cashflow from business units that I know will not be there in the future?
I guess it depends on whether you want to draw up a very detailed (and normally wrong) financial design - or the big picture. Obviously - if you take the cash flow for these business units out, than you must as well predict what they do with the money the get (or got) for them. Better polish your crystal ball ... ;