Revenue is measured at the fair value of consideration received or receivable.
Revenue is recognised as follows.
Revenue from the Crown transactions are considered to be non-exchange transactions.
Revenue from the Crown is measured based on Inland Revenue's funding entitlement for the reporting period. The funding entitlement is established by Parliament when it passes the Appropriation Acts for the financial year. The amount of revenue recognised takes into account any amendments to appropriations approved in the Appropriation (Supplementary Estimates) Act for the year and certain other unconditional funding adjustments formally approved prior to balance date.
Inland Revenue can incur expenses only within the scope, timeframe and value limits of its appropriations.
The fair value of revenue from the Crown is considered equivalent to the funding entitlement.
Revenue from the Crown was lower than budget by $164.762 million. The variance is primarily due to unrequired business transformation contingency funding being returned to the Crown in 2021–22 at the closure of the programme.
Other revenue transactions as outlined below are considered to be exchange transactions.
Revenue from recoveries is recognised as revenue when earned.
Following Te Tai Ōhanga the Treasury's guidance on financial management of secondments (May 2021), we now recognise the reimbursement against expense rather than revenue. The secondee's host bears the cost authorised through their appropriation.
The sale of services is recognised in the accounting period in which the services are provided.
Rental revenue from sub-leased property is recognised as revenue on a straight-line basis over the term of the lease.
| Actual 2021 ($000) | Revenue source | Actual 2022 ($000) | Unaudited budget 2022 ($000) |
|---|---|---|---|
| $14,000 | Accident Compensation Corporation – agency fees | $14,000 | $14,000 |
| $1,304 | Rental revenue from sub-leases | $1,137 | $915 |
| $731 | Revenue from rulings | $982 | $1,180 |
| $256 | Foreign trust administration fees | $933 | n/a |
| $427 | Court costs recovered | $209 | $1,520 |
| $1,519 | Services and information provided to other agencies | $184 | $73 |
| n/a | Unrealised foreign exchange gain | $175 | n/a |
| $654 | Other | $459 | $187 |
| $1,794 | Recovery of secondees' salaries | n/a | n/a |
| $20,685 | Total other revenue | $18,079 | $17,875 |