Explanation of Transition to NZIFRS
These are the Ministry's first forecast financial statements prepared in accordance with NZIFRS.
The accounting policies set out above have been applied in preparing the forecast financial statements for the year ending 30 June 2008.
In preparing its NZIFRS balance sheet, the Ministry has adjusted the amounts reported in previous financial statements prepared in accordance with its old basis of accounting (previous GAAP). An explanation of how the transition from previous GAAP to NZIFRS has affected the Ministry's financial position is set out in the following table and the accompanying notes.
Balance sheet (In thousands of New Zealand dollars)
|
| |
|
30 June 2008 (Main Estimates) |
| |
Notes |
Previous GAAP |
Effect of transition
to NZIFRS |
NZIFRS |
|
| Taxpayers' funds |
|
|
|
|
| General funds |
1,3 |
12,067 |
591 |
12,658 |
| Revaluation reserves |
1 |
722 |
(722) |
0 |
|
| Total taxpayers' funds |
|
12,789 |
(131) |
12,658 |
|
| Assets |
|
|
|
|
| Current assets |
|
|
|
|
| Cash and cash equivalents |
|
2,702 |
0 |
2,702 |
| Prepayments |
|
300 |
0 |
300 |
| Trade and other receivables |
|
18,791 |
0 |
18,791 |
|
| Total current assets |
|
21,793 |
0 |
21793 |
|
| Non-current assets |
|
|
|
|
| Property,plant and equipment |
2 |
11,374 |
(2,650) |
8,724 |
| Intangible assets |
2 |
0 |
2,650 |
2,650 |
|
| Total non-current assets |
|
11,374 |
|
11,374 |
|
| Total assets |
|
33,167 |
0 |
33,167 |
|
| Liabilities |
|
|
|
|
| Current liabilities |
|
|
|
|
| Trade and other payables |
|
14,828 |
0 |
14,828 |
| Provisions - employee entitlements |
|
2,000 |
(1,347) |
653 |
|
| Total current liabilities |
|
16,828 |
(1,347) |
15,481 |
|
| Non-current liabilities |
|
|
|
|
| Provisions - employee entitlements |
|
3,550 |
(1,478) |
5,028 |
|
| Total non-current liabilities |
|
3,550 |
(1,478) |
5,028 |
|
| Total liabilities |
3 |
20,378 |
131 |
20,509 |
|
There are no material differences between the Income Statement presented under NZIFRS and the Income Statement presented under previous GAAP, nor between the Cash Flow Statement presented under NZIFRS and previous GAAP.
Notes to explanation of transition to NZIFRS
- At 30 June 2008, an amount of $722,000 has been reclassified from a revaluation reserve recognised under previous GAAP to general funds. The amount represents the balance on the revaluation reserve at 30 June 2007 in respect of assets that are measured on the basis of deemed cost under NZIFRS.
- Under previous GAAP, computer software development expenditure was classed as property, plant and equipment. Under NZIFRS, these expenditures are classed as an intangible asset. The effect is to increase intangible assets by a forecast net book value of $2,650,000 at 30 June 2008, and decrease property, plant and equipment by a corresponding amount.
- In accordance with NZIFRS, provision has been made for sick leave. The effect is to increase liabilities for employee entitlements by $131,000 at 30 June 2008, and decrease taxpayer's funds by the same amount.