![Budget Economic and Fiscal Update [2007]](/mastheads/budget/2007/spch-fsr-efu07.gif){kind=small}
7 NZ IFRS Transition – Budget 2007
Introduction
The impact of the change to New Zealand equivalents to International Financial Reporting Standards (New GAAP) on Budget 2007 are outlined in the Fiscal Outlook chapter (pages 80-114). The aim of this section is to provide additional detail on those impacts.
Significant impacts are summarised into two main categories:
- changes to the format of the main financial statements to enable easier comparatives with New GAAP format, and
- measurement and reclassification adjustments owing to changes in accounting policy under New GAAP.
The following pages describe the impact of these key format and measurement changes in:
- the Statement of Financial Performance
- the Statement of Cash Flows, and
- the Statement of Financial Position.
Each statement begins with the current “old” format used in previous forecasts. Changes to this format are then detailed separately resulting in the second “Old GAAP 2007 Forecast” column which agrees to the forecast financial statements presented in the GAAP Series Tables chapter (pages 157-184). Subsequent columns detail the measurement and reclassification adjustments owing to changes in accounting policy. These changes all sum together to give the New GAAP 2007 financial statements also presented in the GAAP Series Tables chapter. Detailed explanations for the adjustments are given in the notes at the end of the chapter.
Further details on the adoption and expected impact of moving to New GAAP on the Financial Statements of Government, including NZ IFRS accounting policies for the Government reporting entity are available at www.treasury.govt.nz/nzifrs/.
Forecast Statement of Financial Performance for the year ended 30 June 2007
| Old format | New format | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ million) | Old GAAP 2007 Forecast | Format changes note (i) |
Old GAAP 2007 Forecast | GSF note (ii) |
ACC note (iii) |
NZS Fund note (iv) |
Financial instruments note (v) |
Reclass-ifications note (ix) |
Other note (x) |
New GAAP 2007 Forecast | ($ million) |
Revenue |
Revenue |
||||||||||
| Taxation revenue | 51,539 | 51,539 | 117 | .. | 2 | 51,658 | Taxation revenue | ||||
| Levies, fees, fines and penalties | 3,508 | 3,508 | 16 | 186 | (19) | 3,691 | Other sovereign revenue | ||||
| Total Revenue Levied through the Crown's Sovereign Power | 55,047 | .. | 55,047 | 117 | .. | .. | 16 | 186 | (17) | 55,349 | Total Revenue Levied through the Crown's Sovereign Power |
| Sales of goods and services | 13,111 | 13,111 | 18 | (16) | (536) | (14) | 12,563 | Sales of goods and services | |||
| Investment income | 5,807 | 5,807 | (462) | (1,051) | (896) | (423) | 97 | 3,072 | Interest revenue and dividends | ||
| Other revenue | 2,238 | 2,238 | (86) | 4 | 300 | (50) | 2,406 | Other revenue | |||
| Total Revenue Earned through the Crown's Operations | 21,156 | .. | 21,156 | (548) | .. | (1,029) | (912) | (659) | 33 | 18,041 | Total Revenue Earned through the Crown’s Operations |
| Total Crown Revenue | 76,203 | .. | 76,203 | (431) | .. | (1,029) | (896) | (473) | 16 | 73,390 | Total Revenue (excluding gains) |
Expenses |
Expenses |
||||||||||
By input type |
|||||||||||
| Subsidies and transfer payments | 18,430 | (155) | 18,275 | 24 | 1 | 18,300 | Social assistance and official development assistance | ||||
| Personnel expenses | 15,352 | 321 | 15,673 | (199) | (388) | (2) | 15,084 | Personnel expenses | |||
| 3,099 | 3,099 | (76) | .. | 3,023 | Depreciation and amortisation | ||||||
| Operating expenses | 31,198 | (2,944) | 28,254 | (6) | (79) | (37) | 28,132 | Other operating expenses | |||
| Finance costs | 3,023 | 40 | 3,063 | 5 | (583) | 95 | 200 | 2,780 | Interest expenses | ||
| Movement in total ACC liability | 1,743 | 1,743 | 283 | (1,072) | .. | 954 | Insurance expenses | ||||
| Movement in total GSF liability | 321 | (321) | .. | .. | .. | ||||||
| New operating spending up to Budget 2008 | 80 | 80 | .. | 80 | New operating spending up to Budget 2008 | ||||||
| Top-down expense adjustment | (500) | (500) | .. | (500) | Top-down expense adjustment | ||||||
| Net foreign-exchange (gains)/losses | 40 | (40) | .. | .. | .. | ||||||
| Total Crown expenses | 69,687 | .. | 69,687 | (194) | 283 | .. | (589) | (1,496) | 162 | 67,853 | Total Expenses (excluding losses) |
| Revenue less Expenses | 6,516 | .. | 6,516 | (237) | (283) | (1,029) | (307) | 1,023 | (146) | 5,537 | Operating Balance before gains (losses) |
| .. | 1,029 | 294 | 314 | 7 | 1,644 | Net gains/(losses) on financial instruments | |||||
| .. | 291 | (1,337) | 99 | (947) | Net gains/(losses) on non-financial instruments | ||||||
| .. | .. | 291 | .. | 1,029 | 294 | (1,023) | 106 | 697 | Total Other Gains (Losses) | ||
| Net surplus of TEIs | 52 | 52 | 44 | 96 | Net surplus/(deficit) from associates and joint ventures | ||||||
| 6,568 | 0 | 6,568 | 54 | (283) | .. | (13) | .. | 4 | 6,330 | Operating Balance from continuing activities | |
| .. | (3) | (3) | Gain/(loss) from discontinued operations | ||||||||
| Operating balance (including minority interest) | 6,568 | .. | 6,568 | 54 | (283) | .. | (13) | .. | 1 | 6,327 | Operating Balance (including minority interest) |
| Minority interest | .. | .. | Attributable to minority interest in Air NZ | ||||||||
| Operating Balance | 6,568 | .. | 6,568 | 54 | (283) | .. | (13) | .. | 1 | 6,327 | Operating Balance |
