GNI is calculated using a simple methodology which has been approved by experts across governments:
Empoyee Compensation is defined as Total Employee Compensation for Work Done including wages, salaries, bonuses, social insurance contribution, etc
EBITDA is Earnings before Interest, Tax, Depreciation & Amortisation
There are two steps involved in GNI impact calculation
Step 1: Determine GDP impact
Project X: Company A develops new OGE marginal fields using new technology
Calculation Sample:
| Project Revenue |
USD |
100 |
million |
| Less |
| Production cost |
USD |
10 |
million |
| Raw materials cost |
USD |
8 |
million |
| Employee compensation |
USD |
15 |
milion |
| EBITDA |
USD |
10 |
million |
| GDP Impact of Sample Project = USD15 m + USD10 m = USD 25 million |
Step 2: Adjust for Net Income from Abroad
Company A, a Malaysian OGE company, invests USD1 billion in Country Y.
This investment earns Company A USD100 million in annual profits.
Therefore, as GNI = GDP Impact + Net Income from Abroad,
GNI for Project X = USD25 million + USD100 million = USD125 million
2012/03/01