B.2 & B.3 | 191
NZ IFRS Transition – Budget 2007
The impact of the change to New Zealand equivalents to International Financial Reporting
Standards (New GAAP) on Budget 2007 are outlined in the Fiscal Outlook chapter (pages
80-114). The aim of this section is to provide additional detail on those impacts.
Significant impacts are summarised into two main categories:
• changes to the format of the main financial statements to enable easier comparatives
with New GAAP format, and
• measurement and reclassification adjustments owing to changes in accounting policy
under New GAAP.
The following pages describe the impact of these key format and measurement changes
• the Statement of Financial Performance
• the Statement of Cash Flows, and
• the Statement of Financial Position.
Each statement begins with the current “old” format used in previous forecasts. Changes
to this format are then detailed separately resulting in the second “Old GAAP 2007
Forecast” column which agrees to the forecast financial statements presented in the
GAAP Series Tables chapter (pages 157-184). Subsequent columns detail the
measurement and reclassification adjustments owing to changes in accounting policy.
These changes all sum together to give the New GAAP 2007 financial statements also
presented in the GAAP Series Tables chapter. Detailed explanations for the adjustments
are given in the notes at the end of the chapter.
Further details on the adoption and expected impact of moving to New GAAP on the
Financial Statements of Government, including NZ IFRS accounting policies for the
Government reporting entity are available at www.treasury.govt.nz/nzifrs/.
2007 ! BUDGET ECONOMIC AND FISCAL UPDATE !
192 | B.2 & B.3
Forecast Statement of Financial Performance
for the year ended 30 June 2007