Treasury Instructions 2012

1 Introduction to Treasury Instructions

• 1.1 General
• 1.2 Date of issue
• 1.3 Structure of Treasury Instructions
• 1.4 Application of Treasury Instructions
• 1.5 Access to Treasury Instructions
• 1.6 Review of Treasury Instructions
• 1.7 Changes since last update
• 1.8 Relationship between Treasury Instructions and Treasury Circulars

2 Principles for the development of accounting policies for external financial reporting

• 2.1 Introduction
• 2.2 Legislative requirements
• 2.3 New Zealand generally accepted accounting practice
  • 2.3.1  Asserting compliance with NZ GAAP
  • 2.3.2  Objectives of general purpose financial reporting
  • 2.3.3  Assumptions underlying general purpose financial reports
  • 2.3.4  Qualitative characteristics of external financial reports
  • 2.3.5  Materiality
  • 2.3.6  Financial elements
• 2.4 Accounting policies

3 Accounting policies for external financial reporting by the Government

• 3.1 Introduction
• 3.2 Reporting entity
  • 3.2.1 Public benefit entity
• 3.3 General accounting policies
• 3.4 Judgements and estimations
• 3.5 Specific accounting policies
  • 3.5.1 Reporting and forecast period
  • 3.5.2 Basis of combination
  • 3.5.3 Income
  • 3.5.4 Expenses
  • 3.5.5  Foreign currency
  • 3.5.6 Sovereign receivables and taxes repayable
  • 3.5.7 Financial instruments
  • 3.5.8 Inventories
  • 3.5.9 Property, plant and equipment
  • 3.5.10 Equity accounted investments
  • 3.5.11 Biological assets
  • 3.5.12 Intangible assets
  • 3.5.13 Non-current assets held for sale and discontinued operations
  • 3.5.14 Investment property
  • 3.5.15 Employee benefits
  • 3.5.16 Insurance contracts
  • 3.5.17 Deferred Acquisition Costs
  • 3.5.18 Leases
  • 3.5.19 Other liabilities and provisions
  • 3.5.20 Contingent assets and contingent liabilities
  • 3.5.21 Commitments
  • 3.5.22 Comparatives
  • 3.5.23 Segment analysis
  • 3.5.24 Related parties

4 Accounting and forecasting policy parameters for departmental external financial reporting

• 4.1 Explanatory note
• 4.2 Particular accounting policies: General
  • 4.2.1  Statement of Responsibility
  • 4.2.2  Combination of sub-entities
  • 4.2.3  Goods and Services Tax.
• 4.3 Particular accounting policies: Statement of Financial Performance items
  • 4.3.1  Revenue recognition
  • 4.3.2  Revenue and expense offsetting
  • 4.3.3  Losses arising from natural disasters
  • 4.3.4  Capital charge
• 4.4 Particular accounting policies: Statement of Financial Position items
  • 4.4.1  Property, plant and equipment
  • 4.4.2  Intangible assets
  • 4.4.3  Provision for return of operating surplus
  • 4.4.4  Liability for capital withdrawals
  • 4.4.5  Commitments
• 4.5 Forecasting Policies
  • 4.5.1  General forecasting policies
  • 4.5.2  Forecasting policies for financial assets and liabilities
  • 4.5.3  Forecasting policies for derivatives
  • 4.5.4  Forecasting policies for property plant and equipment
  • 4.5.5  Forecasting departmental net assets
  • 4.5.6  Other forecasting policies

5 Operating instructions: Cost accounting policy parameters

• 5.1 Disclosing cost accounting policies
• 5.2 Documenting cost accounting policies
• 5.3 Classifying direct and indirect costs
• 5.4 Bases and methods of assigning costs to outputs
  • 5.4.1 Introduction
    5.4.2 Assigning expenses
    5.4.3 Attributing direct costs
    5.4.4 Allocating indirect costs
    5.4.5 Pre-established rates
• 5.5 Consistency in applying cost accounting policies
  • 5.5.1 Introduction
    5.5.2 Consistency
    5.5.3 Changes in cost accounting policies
• 5.6 Definition of terms

6 Operating instructions applying to departments as defined in the Public Finance Act 1989

• 6.1 Financial responsibility of Chief Executives
• 6.2 Reporting obligations
  • 6.2.1 Annual financial statements of departments
  • 6.2.2 Provision of reports to Ministers
  • 6.2.3 Provision of reports to the Treasury
  • 6.2.4  Compliance with accounting and forecasting policies
  • 6.2.5  Provision of other information
• 6.3 Departmental revenue, expenditure, assets and liabilities
  • 6.3.1 Managing departmental expenditure
  • 6.3.2 Emergency expenditure requiring Minister of Finance approval
  • 6.3.3 Other expenditure requiring Minister of Finance approval
  • 6.3.4 Foreign exchange exposure management
  • 6.3.5 Departmental insurance and risk management
  • 6.3.6 Prohibition on investing, borrowing or lending
  • 6.3.7 Memorandum accounts
  • 6.3.8 Management of Departmental Assets
• 6.4 Departmental other expenses
  • 6.4.1 Introduction
  • 6.4.2 Loss on sale of assets
  • 6.4.3 Asset devaluations
  • 6.4.4 Restructuring expenses
  • 6.4.5 Asset write-off and impairment expenses arising from natural disasters
  • 6.4.6 Disclosure of other expenses
  • 6.4.7 Summary
    
• 6.5 Crown revenue, expenditure, assets and liabilities
  • 6.5.1 Definition of Crown
  • 6.5.2 Authority to operate Crown bank accounts
  • 6.5.3 Collection of Crown revenue
  • 6.5.4 Disbursement of Crown expenditure
  • 6.5.5 Management of Crown assets
  • 6.5.6 Management of Crown liabilities
  • 6.5.7 Provision of information to Treasury
  • 6.5.8 Public Private Partnerships
    
• 6.6 Banking
  • 6.6.1 Introduction
  • 6.6.2 Bank accounts
  • 6.6.3 Departmental bank accounts
  • 6.6.4 New Zealand dollar Crown bank accounts
  • 6.6.5 Foreign currency Crown bank accounts
  • 6.6.6  Foreign currency holdings in departmental and Crown bank accounts
  • 6.6.7 Power of Minister or the Treasury in relation to Crown or departmental bank accounts
  • 6.6.8 Cash payment schedule
  • 6.6.9 Investment of public money
• 6.7 Trust money
  • 6.7.1 Legislative provisions
  • 6.7.2 Notice of appointment
  • 6.7.3 Accounting for trust money
  • 6.7.4 Internal control and trust money
  • 6.7.5 Reporting of trust money
  • 6.7.6 Records of trust money
  • 6.7.7 Trust bank accounts
  • 6.7.8 Investment of trust money
  • 6.7.9 Taxation
  • 6.7.10 Definition of terms
• 6.8 Contingent liabilities
  • 6.8.1 Introduction
    6.8.2 Contingent liability types
    6.8.3 Register of contingent assets and liabilities
    6.8.4 Certification by Minister
    6.8.5 Power to give guarantees and indemnities