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

Note 27: Net Worth Attributable to the Crown

Forecast   Actual
Original
Budget
$m
Estimated
Actuals
$m
  30 June 2008
$m
30 June 2007
$m
48,239 46,767 Taxpayer funds 46,700 44,222
47,402 52,498 Property, plant and equipment revaluation reserve 58,566 52,442
13 29 Investment revaluation reserve 34 23
97 (175) Cash flow hedge reserve (151) (122)
17 (32) Foreign currency translation reserve (17) (34)
95,768 99,087 Total net worth attributable to the Crown 105,132 96,531
Taxpayer Funds  
42,219 44,222 Opening taxpayers funds 44,222 36,214
6,431 2,559 Operating balance excluding minority interest 2,384 8,022
(470) (1) Other movements 4 13
59 (13) Transfers from/(to) property, plant and equipment revaluation reserve 90 (27)
48,239 46,767 Closing taxpayers funds 46,700 44,222
Property, Plant and Equipment Revaluation Reserve  
47,459 52,442 Opening revaluation reserve 52,442 47,153
2 43 Net Revaluations 6,214 5,262
(59) 13 Transfers from/(to) taxpayer funds (90) 27
47,402 52,498 Closing revaluation reserve 58,566 52,442

The property, plant and equipment revaluation reserve arises on the revaluation of physical assets. Where revalued property, plant or equipment is sold, the portion of the property, plant and equipment revaluation reserve that relates to that asset, and is effectively realised, is transferred to taxpayer funds.

Forecast Actual
Original
Budget
$m
Estimated
Actuals
$m
30 June 2008
$m
30 June 2007
$m
Investment Revaluation Reserve  
13 23 Opening investment revaluation reserve 23 13
6 Increase arising on revaluation of available-for-sale financial assets 14 10
Cumulative (gain)/loss transferred to the statement of financial 
performance on sale of available-for-sale financial assets
(3)
13 29 Closing investment revaluation reserve 34 23

The investments revaluation reserve arises on the revaluation of available-for-sale financial assets. Where a revalued financial asset is sold, the portion of the reserve that relates to that financial asset, and is effectively realised, is recognised in the statement of financial performance. Where a revalued financial asset is impaired, the portion of the reserve that relates to that financial asset is recognised in the statement of financial performance.

Forecast Actual
Original
Budget
$m
Estimated
Actuals
$m
30 June 2008
$m
30 June 2007
$m
Cash Flow Hedge Reserve  
62 (122) Opening cash flow hedge reserve (122) 281
(39) (2) Transfer into reserve 9 (331)
74 (15) Transfer to the statement of financial performance 22 (59)
(36) Transfer to initial carrying value of hedged item (60) (13)
97 (175) Closing cash flow hedge reserve (151) (122)

The cash flow hedge reserve represents hedging gains and losses recognised on the effective portion of cash flow hedges. The cumulative deferred gain or loss on the hedge is recognised in the statement of financial performance when the hedged transaction impacts the statement of financial performance, or is included as a basis adjustment to the non-financial hedged item, consistent with the applicable accounting policy.

Forecast Actual
Original
Budget
$m
Estimated
Actuals
$m
30 June 2008
$m
30 June 2007
$m
Foreign currency translation reserve  
17 (34) Opening foreign currency translation reserve (34) 31
2 Arising from translation of foreign operations 17 (65)
17 (32) Closing foreign currency translation reserve (17) (34)

The foreign currency translation reserve holds foreign exchange gains and losses arising from translating monetary items that form part of the net investment in a foreign operation into New Zealand dollars, and foreign exchange gains and losses associated with translating non-monetary assets into New Zealand dollars if revaluations of those assets are reflected in another reserve rather than in the statement of financial performance.

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