2.4 Accounting policies
The notes to general purpose financial statements must include a summary of significant accounting policies (NZ IAS 1 paragraph 117). This summary must include:
- the measurement basis (or bases) used in preparing the financial statements; and
- the other accounting policies used that are relevant to an understanding of the financial statements.
NZ IAS 8 specifies the disclosures required as a result of changes in accounting policies.
An entity must also disclose the judgements, apart from those involving estimations (see NZ IAS 1 paragraph 125), management has made in the process of applying the entity's accounting policies that have the most significant effect on the amounts recognised in the financial statements (NZ IAS 1 paragraph 122).
Departments must use Crown accounting policies for preparation of their financial information submitted to the Treasury. These can be found in section three and on the Treasury's website.
