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Financial Statements of the Government of New Zealand for the Year Ended 30 June 2008

Notes to the Financial Statements (continued)

Note 15:  Marketable securities, deposits and derivatives in gain
Forecast Actual
Original
Budget
$m
Estimated
Actuals
$m
30 June 2008
$m
30 June 2007
$m
By type  
32,421 33,306 Marketable securities 36,651 27,481
2,037 1,741 Long term deposits 2,787 3,174
464 1,167 Derivatives in gain 1,563 2,352
212 151 IMF special drawing rights 188 183
35,134 36,365 Total marketable securities, deposits and derivatives in gain 41,189 33,190
By maturity  
30,127 34,460 Expected to be realised within one year 37,431 31,600
5,007 1,905 Expected to be held for more than one year 3,758 1,590
35,134 36,365 Total marketable securities, deposits and derivatives in gain 41,189 33,190
By source  
27,859 28,809 Core Crown 32,108 26,291
11,595 10,210 Crown entities 10,790 9,881
1,296 2,124 State-owned Enterprises 3,029 2,150
(5,616) (4,778) Inter-segment eliminations (4,738) (5,132)
35,134 36,365 Total marketable securities, deposits and derivatives in gain 41,189 33,190

Marketable securities comprise bonds, commercial paper, debentures and similar tradable financial assets held by the Government for the purposes of realising capital gains or interest revenue. Marketable securities and derivatives in gain are reported at their fair value. Fair value is either based on quoted market price or using a valuation model where there is no active market. The valuation models used generally calculate the expected cash flows under the terms of each specific contract and then discounts these values back to present value.

Long-term deposits are instruments with maturities greater than three months that are not traded in an active market. Long-term deposits are measured at amortised cost. Their carrying amount provides a reasonable approximation of their fair value.

Note 16:  Share Investments
Forecast Actual
Original
Budget
$m
Estimated
Actuals
$m
30 June 2008
$m
30 June 2007
$m
By maturity  
12,590 8,624 Expected to be realised within one year 8,934 9,401
4,396 3,912 Expected to be held for more than one year 4,030 4,180
16,986 12,536 Total share investments 12,964 13,581
By source  
10,734 7,133 Core Crown 7,340 7,755
6,174 5,373 Crown entities 5,583 5,784
84 67 State-owned Enterprises 63 85
(6) (37) Inter-segment eliminations (22) (43)
16,986 12,536 Total share investments 12,964 13,581

Share investments are reported at fair value. The fair value of listed share investments are based on quoted market price. The fair value of unlisted share investments is determined from the initial cost of the investment and adjusted for performance of the business and changes in equity market conditions since inception date.

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