Regulatory burden measure present value report

Here, you get option information, including its description and the businesses affected, total present value of costs per business and total present value of costs for all businesses. You'll also see ongoing costs. These are affected by the timeframe and discount rate you’ve chosen and applied. This means, you can see the costs businesses face now and into the future.

It's assumed the ongoing costs are recognised on 1 January of every year.

You can't add current and future costs without including a timeframe and discount rate. Businesses often prefer to defer their costs. (This reflects the fact that money not spent now can be invested to return the original funds, plus interest, at some time in the future.)

To add costs over time, you need to 'discount' them, that is, calculate the present value. The discount rate reflects the interest that could be earned on the money over the timeframe you’ve given. The default discount rate is 7%, but you can enter your own discount rate.

The present value formula used is:

• Present value for Year n ongoing cost = Year n ongoing cost / (1 + discount rate)(n-1), where n =1 to n years and the cost is recognised on January 1 of year n.

Discounted rate

This is the percentage costs that'll likely increase per year if the costs are ongoing.

7% appears automatically. You can change this by entering a new number in the field.

Timeframe (in years)

This is the number of years the option will likely be active. For example, it might be active for 2 years or 10 years.

The number you enter will affect what you see in the report.

Options

Do you only want to report on one option? Choose the option from the drop-down. Click the Show report button, or fill in the explanatory info, then click the Show button.

Explanatory information

Here, you can add more info to your report, explaining its content or providing some background. You can also include feedback from consultation and any benefits that arise from the option. Click the Show report button.

Handy hint! You can cut and paste the info from another document, such as a Microsoft Word document.

You don't have to fill this in to see the report.

Important! When pasting text into the Regulatory burden measure, you will lose any formatting, such as bold or bullet points.

Report info

Here, you can see all the report details after you have clicked the Show report button. This info is from the Calculate costs tab.

Click the Export to Excel button. This will let you save the report.

It will be saved as an .xls file, allowing you to open the report in MS Excel.