Transition to New Zealand Equivalents to International Financial Reporting Standards
The Minister of Finance has announced that the Crown will first adopt New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) for its financial year ending 30 June 2008.
The Ministry has performed a preliminary assessment to determine those standards likely to impact on the Ministry's financial performance, financial position and disclosures. The implementation guidance and Crown accounting policies issued by the Treasury have also been considered.
At this time it is expected that the impact of NZ IFRS will be confined to a few specific areas:
- Employee benefits, including assessing the requirement for recording a provision for sick leave
- Reclassification of software from property, plant and equipment to intangible assets
- Removal of fishing quota from the non-departmental schedule of assets. Crown-owned fishing quota is an internally generated asset.
The disclosures made in this note are based on our knowledge of the expected NZ IFRS requirements and applied to the current facts and circumstances of the Ministry. The actual impact of adopting NZ IFRS may vary from the information presented in this note and this variation may be material. It is not possible to estimate reliably the quantitative impact of the change upon the Ministry's financial performance and financial position at this time.