Non-departmental schedules and statements

STATEMENT OF ACCOUNTING POLICIES: NON-DEPARTMENTAL

for the year ended 30 June 2006

Reporting entity

The following non-departmental statements and schedules record the revenue and receipts, expenses, assets, liabilities, contingencies and commitments the Department administers on behalf of the Crown. These, together with associated notes, are presented below.

Measurement system

Measurement and recognition rules applied in the preparation of these non-departmental financial statements and schedules are consistent with generally accepted accounting practice and Crown accounting policies.

Goods and services tax (GST)

Appropriations for expenses and capital expenditure are authorised on a GST-exclusive basis with effect from 1 July 2005.

The Statement of Non-Departmental Expenditure and Appropriations is exclusive of GST (where applicable). The Schedules of Assets and Liabilities are exclusive of GST, except for payables and receivables, which are GST inclusive. All other figures are GST exclusive (where applicable).

Any payments made for GST input tax are made under the authority of section 6 of the Public Finance Act 1989.

Comparatives

As a result of the new reporting format, comparatives may have changed. The comparative information has not been restated to exclude GST as approved appropriations for the 2005 financial year were made on a GST inclusive basis, and any restatement of the comparative information would not reflect those approved appropriations.

Revenue and expenditure

Revenue and expenditure are recognised when earned or incurred respectively and are reported in the financial period to which they relate.

Receivables

Receivables are recorded at estimated realisable value after providing, where necessary, for doubtful and uncollectable debts.

Commitments

Future expenses and liabilities to be incurred on contracts that have been entered into at balance date are disclosed as commitments (at the point a contractual obligation arises) to the extent that they are equally unperformed obligations. Commitments relating to employment contracts are not disclosed.

Contingencies

Contingent liabilities and assets are disclosed at the point at which the contingency is evident.

These non-departmental balances are consolidated into the Crown Financial Statements and therefore readers of these statements and schedules should also refer to the Crown Financial Statements for the year ended 30 June 2006.