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Budget 2024: The Government has announced FamilyBoost, a proposed new childcare payment to help eligible families with the rising costs of Early Childhood Education (ECE). Find out more: Beehive.govt.nz

For those instruments recognised at fair value in the Statement of Financial Position, fair values are determined according to the following hierarchy:

  1. quoted market price (level 1)—financial instruments with quoted prices for identical instruments in active markets
  2. valuation technique using observable inputs (level 2)—financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable
  3. valuation techniques with significant non-observable inputs (level 3)—financial instruments valued using models where 1 or more significant inputs is not observable.

Inland Revenue’s financial assets and liabilities at balance date are valued at fair value using observable inputs (level 2). There are no quoted market prices (level 1) for these instruments.

The following table analyses the basis of the valuation of classes of financial instruments measured at fair value. 

Last updated: 19 Dec 2023
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