Reconciliation of prior year surplus

The following table shows the reconciliation of surplus, resulting from the transition from NZ FRS to NZ IFRS for the year ended 30 June 2007.

for the year ended 30 June 2007
	Notes	30 June 2007 NZ FRS $000	30 June 2007 Effect on transition to NZ IFRS $000	30 June 2007 NZ IFRS $000
Income
Revenue Crown		506,759	-	506,759
Revenue other		28,705	-	28,705
Gains	a	-	116	116
Total income		535,464	116	535,580
Expenditure
Personnel	a	334,981	25	335,006
Operating	a,b,c	149,423	3,970	153,393
Depreciation and impairment	d	37,997	(21,927)	16,070
Amortisation and impairment	d	-	21,927	21,927
Capital charge		9,803	-	9,803
Total expenditure		532,204	3,995	536,199
Net surplus/(deficit)		3,260	(3,879)	(619)

Explanatory notes - Reconciliation of surplus

a. Forward exchange contracts
This represents the realised and unrealised gains and losses on foreign currency forward exchange contracts.

b. Inventories held for external distribution
This represents the recognition of inventories held for external distribution of $1,372,000 that were on hand as at 30 June 2007.

c. Lease make-good
This represents the recognition of lease make-good obligations of $5,292,000.

d. Amortisation and impairment
This represents the reclassification from depreciation and impairment to amortisation and impairment for software class of $21,927,000.

Statement of Cash Flows

There have been no material adjustments to the Statement of Cash Flows on transition to NZ IFRS.