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The Crown's balance sheet position

Table 3.1 describes the Crown's past, present and forecast balance sheets.

Table 3.1 - The Crown's balance sheet
  2003
Actual
$m
2008
Actual
$m
2013
Actual
$m
2014
Forecast
$m
2015
Forecast
$m
2016
Forecast
$m
2017
Forecast
$m
Assets              
Cash and cash equivalents 2,732 3,804 14,924 10,221 9,535 9,236 9,117
Receivables 10,143 14,158 19,883 18,968 17,909 18,191 18,642
Marketable securities, deposits and derivatives in gain 16,572 41,189 44,000 44,522 40,429 45,246 53,732
Share investments 4,734 12,964 17,359 21,289 23,044 24,747 26,511
Advances 6,300 12,948 22,613 24,359 26,268 28,188 29,780
Inventory 840 964 1,140 1,148 1,189 1,296 1,267
Other assets 576 1,663 2,295 2,268 2,366 2,404 2,385
Property, plant and equipment 52,667 103,329 109,833 113,277 115,464 117,316 118,833
Equity accounted investments 4,212 8,065 9,593 9,876 10,130 10,331 10,478
Intangible assets and goodwill 1,075 1,751 2,776 2,878 2,872 2,829 2,788
Forecast for new capital spending - - - 206 773 1,589 2,539
Top-down capital adjustment - - - -450 -625 -800 -925
Total assets 99,851 200,835 244,416 248,562 249,354 260,573 275,147
Liabilities              
Issued currency 2,895 3,530 4,691 4,936 5,084 5,237 5,394
Payables 9,208 10,895 11,160 11,955 12,103 13,238 13,971
Deferred revenue - 1,292 1,714 1,695 1,733 1,740 1,746
Borrowings 38,285 46,110 100,087 104,354 104,608 110,532 117,271
Insurance liabilities 9,155 20,484 37,712 33,430 31,140 30,848 31,738
Retirement plan liabilities 13,857 8,257 11,903 10,880 10,501 10,192 9,925
Provisions 2,670 4,753 7,138 6,417 6,176 5,939 5,866
Total liabilities 76,070 95,321 174,405 173,667 171,345 177,726 185,911
Total assets less total liabilities 23,781 105,514 70,011 74,895 78,009 82,847 89,236
Net worth              
Total net worth attributable to the Crown 23,687 105,132 68,071 69,165 72,242 77,040 83,401
Net worth attributable to minority interest 94 382 1,940 5,730 5,767 5,807 5,835
Total net worth 23,781 105,514 70,011 74,895 78,009 82,847 89,236

Classifying the Crown balance sheet

Figure 3.1 - Crown balance sheet by functional class
Figure 3.1 - Crown balance sheet by functional class   .
Source:  The Treasury

For the analytical purposes of this Statement, components of the accounts have been classified into one of three broad functional classes - Social, Financial, or Commercial - selected to capture the primary purpose for holding the asset or liability.

This classification, while useful, is somewhat arbitrary as some assets or liabilities may have multiple purposes. For example, student loan assets have been classified as being social assets because they fulfil a social purpose to facilitate access to tertiary education, even though they may be seen as being of a financial nature.

Social

Assets and liabilities held by the Crown primarily to provide public services or to protect assets for future generations.  These include, for instance, roads, schools, and the national parks.  For the purposes of this document, social assets also include tax receivables and student loans managed by the Inland Revenue Department, and Crown companies that do not have purely commercial objectives such as Crown Research Institutes.

Financial

Assets and liabilities held by the Crown to finance or prefund government expenditure and to recognise the obligation for future expenditure.  This category is comprised of the Crown Financial Institutions (CFIs), the Reserve Bank of New Zealand, and government borrowing via the Treasury's New Zealand Debt Management Office.[11]

Commercial

A portfolio of companies held by the Crown with commercial objectives.  The companies are largely self-sustaining entities operating in openly competitive environments.  This category is comprised of all the MOM companies and SOEs, excluding the land held within New Zealand Railways Corporation which is classified as a social asset.  TVNZ and Public Trust are treated as commercial entities due to their primary purpose being commercial in nature.

Notes

  • [11]CFIs include New Zealand Superannuation Fund, Accident Compensation Corporation, Earthquake Commission and the Government Superannuation Fund.
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