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Budget 2005 Home Page Half-Year Economic & Fiscal Update 2005

5   Generally Accepted Accounting Practice (GAAP) Series Tables

These forecasts have been prepared in accordance with the Public Finance Act 1989.

They are based on the accounting policies and assumptions that follow. As with all such assumptions, there is a degree of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The forecasts have been prepared in accordance with the Statement of Responsibility and reflect the judgements and information known at the time they were prepared. They reflect all Government decisions and circumstances communicated to 7 December 2005.

Finalisation dates and key assumptions that underpin the preparation of the GAAP tables are outlined at the start of the Fiscal Outlook chapter on page 27.

10 year trend information

Summary indicators 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 Actual Actual Actual Actual Actual Forecast Forecast Forecast Forecast Forecast
(% of GDP)           
Revenue           
Core Crown32.131.733.133.034.534.234.433.933.334.1
Tax Revenue29.328.830.129.930.931.031.230.830.130.9
Total Crown38.439.743.242.544.443.944.243.943.143.7
Expenses           
Core Crown31.030.231.629.330.631.931.832.632.532.4
Total Crown37.337.941.837.340.340.540.741.641.341.1
Operating balance 1.11.91.55.24.13.53.62.41.92.7
OBERAC 1.82.24.26.25.93.73.62.41.92.7
Net Worth 9.714.918.025.033.135.037.738.638.539.4
Gross sovereign-issued debt 31.028.827.325.023.220.920.221.020.219.3
Net core Crown debt 16.915.313.310.77.16.76.47.08.08.0
NZS Fund Balance 0.00.51.42.84.35.97.69.210.812.5

Statement of Accounting Policies and Forecast Assumptions

General Accounting Policies and Forecast Assumptions

General accounting policies

Accounting policy

These Forecast Financial Statements comply with generally accepted accounting practice. The measurement base applied is historical cost adjusted for revaluations of property, plant and equipment (where appropriate), commercial forests and marketable securities & deposits and equity investments held for trading purposes.

Revaluations are made to reflect the forecast service potential or economic benefit obtained through control of the assets. The accrual basis of accounting has been used.

Forecast assumptions

For forecast purposes, no revaluations of property, plant and equipment are projected beyond the current year.

Specific Accounting Policies and Forecast Assumptions

Forecast periods

The reporting periods covered by these Forecast Financial Statements are the years ending 30 June 2006, 30 June 2007, 30 June 2008, 30 June 2009 and 30 June 2010.

Certain state-owned enterprises and Crown entities have different reporting periods from the Crown.

The forecasts for 30 June 2006 have generally been prepared using actual data to 30 September or 31 October 2005 (in some instances). Transactions for the remainder of the year are forecast in accordance with the Crown’s accounting policies and forecast assumptions.

Changes in accounting policies

There has been a change in the accounting policy for student loans to better reflect their value under the new no-interest policy. Further information on the nature of the change is disclosed in the Student Loan Policy box on page 39 and the impact of the change is reflected in Note 10 on page 113.

All other policies have been applied on a consistent basis during the forecast period.

Changes in forecast assumptions

Changes to the forecast assumptions used for the forecasts published in the 2005 Half Year Update are outlined on page 27.

Detailed accounting policies and forecast assumptions

The specific accounting and forecasting policies are reproduced in full on Treasury’s website at http://www.treasury.govt.nz/forecasts/hyefu/2005/.

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