Accounting Policies (continued)
Reporting and Forecast Period
The reporting period for these forecast financial statements is the year ended 30 June 2010 to 30 June 2014.
The “2009 Actual” figures reported in the statements are the audited results reported in the Financial Statements of Government for the year ended 30 June 2009. The “2010 Previous Budget” figures are the original forecasts to 30 June 2010, as presented in the 2009 Budget. The “2010 Forecast” figures incorporate actual financial results up to either 28 February 2010 or 31 March 2010.
Where necessary, the financial information of State-Owned enterprises and Crown entities (that have a balance date other than 30 June) has been adjusted for any transactions or events that have occurred since their most recent balance date and that are significant for the Government's financial statements. Such entities are primarily in the education sector.
Basis of Combination
These forecast financial statements combine the following entities using the acquisition method of combination:
Core Entities
- Ministers of the Crown
- Government departments
- Offices of Parliament
- the Reserve Bank of New Zealand
- New Zealand Superannuation Fund
Other entities
- State-Owned enterprises
- Crown entities (excl. Tertiary Education Institutions)
- Air New Zealand Limited
- Organisations listed in Schedule 4 of the Public Finance Act 1989
Corresponding assets, liabilities, income and expenses, are added together line by line. Transactions and balances between these sub-entities are eliminated on combination. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies into line with those used by the Government Reporting entity.
Tertiary education institutions are equity-accounted. This policy results in the recognition of their net assets, including asset revaluation movements and surpluses and deficits. The reason for adopting this different method of combination for tertiary education institutions is explained in the Financial Statements of the Government of New Zealand for the year ended 30 June 2009.
The basis of combination for joint ventures depends on the form of the joint venture:
| Forms of Joint Venture | Basis of Combination |
|---|---|
| Jointly controlled operations | The Government reporting entity recognises the assets it controls, the liabilities and expenses that it incurs, and its share of the jointly controlled operations' income. |
| Jointly controlled assets | The Government reporting entity recognises its share of the jointly controlled assets, its share of any liabilities and expenses incurred jointly, any other liabilities and expenses it has incurred in respect of the jointly controlled asset, and income from the sale or use of its share of the output of the jointly controlled assets. |
| Jointly controlled entities | Jointly controlled entities are equity accounted, whereby the Government reporting entity initially recognises its share of interest in these entities' net assets at cost and subsequently adjusts the cost for changes in net assets. The Government reporting entity's share of the jointly controlled entities' surpluses and deficits are recognised in the statement of financial performance. |
Accounting Policies
The accounting policies set out below have been applied consistently to all periods in the 2010 Budget Update.
