MAF deforestation accounting opinion with KPMG review

MAF has produced an opinion on how a forest/land owner who has no exemptions from applicable accounting standards should classify and present in Financial Statements a deforestation penalty under the New Zealand Emissions Trading Scheme (NZETS).

The MAF opinion was externally reviewed by the accounting firm KPMG and KPMG’s opinion is the first part of this document. The main difference between KPMG's and MAF's opinions is the point at which the NZETS deforestation penalty should be recognised if it happens to be a liability. MAF considers that the liability should be recognised when there is a legally binding obligation to deforest as may occur, for example, in certain sale contracts. KPMG considers recognition should occur only after deforestation has occurred.

Disclaimer

While every effort has been made to ensure the information in this publication is accuate, the Ministry of Agriculture and Forestry does not accept any responsibillity or liability for error or fact omission, interpretation or opinion which may be present, not for the consequences of any decision based on this information.

Any view or opinions expressed do not necessarily represent the official view of the Ministry of Agriculture and Forestry.

Contact for Enquiries

Sustainable Land Management and Climate Change
MAF
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: 0800 CLIMATE (254 628)
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