FrankenMauser,
No, it is not complicated at all. I used to run these same numbers every day, in business, when designing machinery that had to rotate certain off-center loads, and torque is simply a force multiplied by a distance. The engineering term for it is a moment. Then, you add the moments together to get the total (if there is more than one moment, and in this instance, we have two).
1 foot pound of torque, is simply 12 inch pounds of torque (twisting force) applied to the center of any shaft, fastener, etc. A torque wrench, irregardless of its length, is designed to click when you mash down hard enough with a force (force being weight), until it clicks, and if it is calibrated correctly, it will click at the amount of foot pounds you set it for, and generate that into the shaft, fastener, etc. at its center. Here, the wrench could be 24" long, and you supply it 1/2 pound to its handle, but it still clicks at a 12 pound setting because that is what it is delivering, or 1/2 pound x 24" = 12 foot pounds.
A foot pound, or 12 inch pounds, is simply a lever, connected to a central shaft, or in this case, a nut, with a pound weight hanging 12 inches out on the lever from the center of the shaft/nut. (1 pound x 12 inches from center). An inch pound is still measured at an inch away from center.
Now, any torque wrench (most are 12" or longer), when calibrated, and set at 30 foot pounds, will generate 30 foot pounds of torque, into the center of the square wrench stud, when it clicks. However, if we convert this into inch pounds, which is simply multiplying by 12, we get 360 inch pounds, or the same as if a 360 pound weight was hung one inch from the center of any shaft, nut, etc. The wrench becomes a lever, and any length on out drops the applied force needed to obtain the same desired 360 pound result. What would have took 360 pounds at 1 inch, and by increasing it to 12", would only take 30 pounds for the same result. If the wrench was 18" from the center of the shaft/nut, etc. to where the weight was applied, then it would take 20 pounds for the same result, even though the setting on the wrench says 30 Ft. Lb, because it is calibrated for its length, (and technically the moment of the wrench itself is added to the setting in the calibration, meaning a little less weight needed)
The problem arises when you add something longer onto the wrench, like this adapter, then the calibration goes out the window, if you want to know the real induced torque on the nut/shaft. You have to measure from the center of the square stud of the wrench, to the center of the shaft/nut, etc., and either deduct it for what is called out, or in Colts case, they just say use 30 Ft. Lb. with adapter, but they don't tell you that you are actually putting more into the nut because of this, due to the extension.
For instance: We have a 12" wrench, set for 30 Ft. Lb., and we know it will click when a 30 pound weight is applied to it's handle (the weight is according to the length of the wrench to achieve the same due to its setting). Then, we have a nut adapter that extends from the wrench, from the center of it's square stud, another two inches from the center of a nut/shaft; that two inches is added to the lever I mentioned above, and even though the wrench will click at 30 Ft. Lb., it actually placed a twisting force on the nut/shaft of 420 pounds at one inch, or 35 foot pounds, or 30 pounds at 14" away, when the wrench clicked, because it's leverage was multiplied over two more inches. The formula you show, is to calculate what the setting is, to achieve the same result, or what you set it at to achieve the above, for the wrench you have. You need it, because the wrench is other than 12". However, it shows that the nut, in Colt's instance, is receiving more torque than 30 Ft. Lb., even though that is what the wrench is supplying and clicking at. That two inch difference is supplying 60 more inch pounds to the nut, or 30 Lb. x two inches = 60 in. lb., and is added to it, so 30 Ft. lb. or 360 in. lb. + 60 in. lb. = 420 in. lb., then divide by 12" to get foot pounds, and it is 35 Ft. Lb. Colt doesn't say that the nut is adjusted to 30 Ft. lb., but to set the wrench at 30 Ft. lb. and use the adapter. They don't know if I picked up a 12 inch or an 18 inch long torque wrench, as either will supply 30 Ft. lb. torque or force when calibrated.
In the case above, as long as it supplies 30 pounds force to the extension when it clicks, 2 inches away from center due to the adapter, it creates an extra 60 in. lb., or 5 Ft. lb., that has to be added on to the 30. This is why I say it has to be calculated, for the tool you are going to use, when you do this, as the nut is not going to be seeing 30 Ft. lb., but more.
To get 30 Ft. lb. from an 18" wrench, it needs less weight to achieve the same result as the 12" wrench, or 20 pounds on the handle instead of 30, to get it to click at the 30 lb. setting (20 lb. x 18" = 360/12=30 Ft. lb.). 20 pounds then, applied at the end of 20" (18" to weight on wrench + 2") is 400 inch pounds, one inch from the nuts center, and if we divide by 12" to get equivalent foot pounds, we get 400 / 12 = 33.3 Ft. Lbs. This is because you are still applying 20 pounds to the handle, (no matter how long the extension or if there is none), in order to get the wrench to click for a 30 Ft. lb. setting. However, you are not, as in what Colt tells you to do, recalculating your wrench to give the nut 30 Ft. Lb. of torque., but still applying 30 Ft. lb. at 2" off center, and then adding the two moments together.
(These examples are all neglecting the weight of the wrench, and it's center of gravity moment. This, itself, will knock off the weight applied on the wrench. In other words, say an 18" overall length wrench weighed two pounds, and its center of gravity was at 9", you would add 18 inch pounds, or 1.5 Ft. lb. to each setting, which is included in the calibration, but we would still have the same result as above).