Statement of Intent - 2004 - Part 3
Statement of accounting policies and forecast assumptions - pages 78-79
Reporting entity
Inland Revenue administers activities on an agency basis on the Crown's behalf. These activities comprise elements of income, expenditure, assets, liabilities and cash flows, which form part of the consolidated forecast financial statements of the Government.
The forecast financial information has been prepared by Inland Revenue and represents extract information of the Crown activities which are administered by Inland Revenue.
Measurement system
These schedules have been prepared on the basis of modified historical cost unless otherwise stated. The accrual basis of accounting has been used unless otherwise stated.
Accounting policies
The following particular accounting policies, which materially affect the measurement of financial results and financial position, have been applied.
Revenue
The Crown provides many services and benefits that do not give rise to revenue. Further, payment of tax does not, of itself, entitle a taxpayer to an equivalent value of services or benefits, as there is no direct relationship between paying tax and receiving Crown services and transfers. Where possible, revenue is recognised at the time the debt to the Crown arises.
| Revenue type | Revenue recognition point |
|---|---|
| Source deductions (PAYE) | When an individual earns income that is subject to PAYE |
| Resident withholding tax1 | When an individual is paid interest or dividends subject to deduction at source |
| Fringe benefit tax (FBT) | When benefits are provided that give rise to FBT |
| Provisional tax2 | Payment due date |
| Terminal tax2 | Assessment filed date |
| Goods and services tax | When the liability to the Crown is incurred |
| Stamp, cheque and credit card duties | When the liability to the Crown is incurred |
| Other indirect taxes | When the debt to the Crown arises |
1 Corresponds to withholding taxes on residents' interest and dividends.
2 Provisional and terminal taxes are paid by "other persons" and companies.
Investment income
Investment income is recognised in the period in which it is earned.
Receivables and advances
Receivables and advances are recorded at the amounts expected to be ultimately collected in cash.
Liabilities
All liabilities are recorded at the estimated obligation to pay.
Specific accounting policies and forecast assumptions
Forecast assumptions
For forecast purposes, no revaluations are projected beyond the current year.
Finalisation dates
The forecast financial schedules were finalised on 29 April 2004.
Forecast periods
The reporting periods covered by these forecast financial schedules are the years ending 30 June 2004 and 30 June 2005. The forecasts for 30 June 2004 have generally been prepared using actual data to 31 March 2004. Transactions for the remainder of the year are forecast in accordance with the Crown's accounting policies and forecast assumptions.
Changes in accounting policies
All policies have been applied on a consistent basis during the forecast period. These forecast financial schedules comply with generally accepted accounting practice and there have been no changes in accounting policies during the period.
Other pages in: Statement of Intent - 2004 - Part 3
- Statement of accounting policies and forecast assumptions - page 80-81
- Schedule of Forecast Expenditure - page 82
- Schedule of Forecast Assets - page 83
- Schedule of Forecast Liabilities - page 84
- Schedule of Forecast Movements in Equity - page 85
- Schedule of Forecast Cash Flows from Operating Activities - pages 86-87
- Schedule of Forecast Cash Flows from Investing Activities - page 88
- Schedule of Forecast Expenditure - page 89
- Schedule of Forecast Cash Movements - page 90
- Schedule of Forecast Operating Surplus to Operating Cash Flow - page 91
- Schedule of Forecast Contingent Liabilities - page 92
- Schedule of Forecast Accident Compensation Collection - page 93
- Schedule of Forecast Expenditure and Appropriations - page 94
- Schedule of Forecast Student Loans - page 95
- Statement of Intent a map of Inland Revenue office locations - page 96
Date published: 16 Nov 2004
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