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Statement of Intent 07/10

Contents

Part A: An overview of our strategy

Part B: Current year forecasts

Part C: Additional information

Reconciliation of taxpayers' funds

The following table shows the changes in taxpayers' funds, resulting from the transition from previous NZ GAAP to NZ IFRS as at 1 July 2007.

  Note Previous
NZ GAAP
1 July 2007
$000
Effect on
transition to
NZ IFRS
1 July 2007
$000
NZ IFRS
1 July 2007
$000

Taxpayers' funds

       
General funds a,b,c 9,584   (340) 9,244
Total taxpayers' funds   9,584 (340) 9,244
         

Current assets

       
Cash and bank balances   750 - 750
Debtors and receivables   8,100 - 8,100
Total current assets   8,850 - 8,850
         

Non-Current Assets

       
Property, plant and equipment a 12,839 (1,009) 11,830
Intangible assets a - 798 798
Total non-current assets a 12,839 (211) 12,628
Total assets   21,689 (211) 21,478
         

Current liabilities

       
Creditors and payables   4,375 - 4,375
Deferred revenue   1,000 - 1,000
Provision for payment of surplus to the Crown   64 - 64
Other provisions b 5,000 72 5,072
Employee entitlements c 983 57 1,040
Total current liabilities   11,422 129 11,551
         

Non-current liabilities

       
Employee entitlements   683 - 683
Total non-current liabilities   683 - 683
Total liabilities   12,105 129 12,234
Net assets   9,584 (340) 9,244

Notes

a Intangible assets - Computer Software
Computer software was classified as part of property, plant and equipment under previous NZ GAAP. The net book value of computer software reclassified as an intangible asset on transition is $798,000. This figure excludes $211,000 net book value of internally generated websites (Department and ConsumerBuild) that do not meet the recognition criteria for an intangible asset as they do not generate probable future economic benefits. They were developed for information purposes.

b Liability for make good under accommodation leases
During the process of identifying the effects of transition to NZ IFRS it was identified that no liability had been recognised to make good for any alterations (leasehold improvements) or for wear and tear (eg, removing partitions, replacing carpets, etc) when accommodation leases expire. A review was undertaken of our lease agreements and a liability provision of $72,000 was established.

c Liability for sick leave
Employee sick leave was not recognised as a liability under previous NZ GAAP. NZ IAS requires the Department to recognise unused sick leave entitlement that can be carried forward at balance date to the extent that the Department anticipates it will be used by staff to cover absences.

Details of forecast fixed assets by category

As at 30 June 2008

  30 June 2006
Actual
Net Book Value
$000
30 June 2007
Estimated
Actual and Budgeted
Net Book Value
$000
30 June 2008 projected position
Cost
$000
30 June 2008 projected position
Accumulated
Depreciation
$000
30 June 2008 projected position
Net Book Value
$000
Office equipment 85 972 1,161 265 896
Office renovations 5,432 4,870 6,579 2,384 4,195
Furniture and fittings 102 258 421 211 210
Computer hardware 1,328 2,992 8,725 3,118 5,607
Computer software 884 3,318 - - -
Motor vehicles 130 429 735 375 360
Work in progress          
- leasehold improvements 139 - - - -
- computer hardware 8 - - - -
- computer software 125 - - - -
Total 8,233 12,839 17,621 6,353 11,268