Explanatory notes - transition to NZ IFRS
Note 1 - Intangible Assets
Computer software was classified as part of property, plant and equipment under previous NZ GAAP. The net book value of computer software reclassified as an intangible asset on transition to NZ IFRS was $12.445 million.
Note 2 - Sick Leave
Sick leave was not recognised as a liability under previous NZ GAAP. NZ IAS requires the Ministry to recognise employees unused sick leave entitlement which can be carried forward at balance date, to the extent that the Ministry anticipates it will be used by staff to cover future absences. The amount of sick leave liability recognised on transition to NZ IFRS was $480,000.
Note 3 - ACC Partnership Programme
The ACC Partnership Programme liability was not recognised under previous NZ GAAP and is an insurance contract under NZ IAS 4. The Ministry is required to recognise the value of expected future payments for amounts in relation to unpaid reported claims, claims incurred but not reported and claims incurred but no information available. The amount of ACC Partnership Programme liability recognised on transition to NZ IFRS was $198,000.
Note 4 - Inventory
Inventory held for distribution during major disease responses e.g. foot-and-mouth vaccine, has been reclassified from a current to a term asset under NZ IFRS.
Contact for Enquiries
Strategy and Performance Group
Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: +64 4 894 0100
Fax: +64 4 894 0738
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