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Note 33: Impact of Adoption of NZ PBE Standards

These financial statements, including the comparatives, have been prepared in accordance with Public Sector PBE Accounting Standards (PBE Standards) - Tier 1. These standards are based on International Public Sector Accounting Standards (IPSAS). Previously published financial statements have been prepared in accordance with NZ equivalents to International Financial Reporting Standards as applicable for public benefit entities (NZ IFRS (PBE)).

This note explains how the transition from previous GAAP to PBE standards has affected the reported financial position and financial performance for the year ended 30 June 2014.

Revenue
$m
Expense
$m
OBEGAL
$m
Assets
$m
Liabilities
$m
Net Assets
$m
Closing balance 30 June 2014 89,396 92,170 (2,933) 256,083 175,304 80,779
(a) Tax revenue recognition 89 89 660 858 (198)
(b) Initial recognition of    
sovereign revenue (293) (293)
Other minor items 7 (35) 42 81 (35) 116
Restated 30 June 2014 89,199 91,842 (2,802) 256,824 176,127 80,697

a) Under NZ PBE standards the recognition point of some tax revenue changed to ensure the tax was recognised when the taxable event occurred, rather than when an assessment was filed (the previous policy).

b) The initial recognition of sovereign revenue has changed so that sovereign revenue is initially recognised at fair value (net of impairment expenses). This compares to the previous policy of showing revenue at the gross amount with a separate impairment expense. The impairment expense is now netted off against revenue instead of shown separately.

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