Statement of accounting policies

For the year ended 30 June 2006

The Statement of Intent of the Ministry of Women's Affairs, a wholly owned entity of the Crown, has been prepared in accordance with section 41 of the Public Finance Act 1989 and in accordance with generally accepted accounting principles.

The period covered by the Statement of Intent is the year ending 30 June 2006. The forecast is based on assumptions regarding the operating and financial performance of the Ministry and other general economic and financial assumptions.

Key assumptions underlying this forecast are stated below. These assumptions were adopted by the Ministry in February 1998 and represent the Ministry's best estimate of its expected performance over the forecast period. The forecast for the period takes into account the Ministry's judgement as to the most probable set of economic conditions over the forecast period.

Due care and attention have been given by the Ministry in preparing the financial forecast: however, the Ministry cannot give any guarantee or assurance that the forecasts will be achieved. It is possible that actual results will be different from those forecast, since anticipated events frequently do not occur as expected and variations may be material.

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Measurement System

The measurement base adopted is that of historical cost unless otherwise stated.

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Accounting Policies

The following accounting policies which materially affect the measurement of financial performance, financial position, service performance and cash flows of the Ministry of Women's Affairs have been applied.

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Depreciation

Fixed assets, excluding artworks, are depreciated on a straight-line basis over the useful life of the asset. The estimated life of the various classes of assets is as follows:

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Cost Allocation

Direct costs are charged directly to outputs. Indirect costs are charged to outputs on the basis of direct costs.

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GST

The statements are exclusive of GST, except for payables and receivables. The net GST owing to the Inland Revenue Department at the end of the period is included in current liabilities.

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Revenue

The Mininstry derives revenue through the provision of outputs to the Crown, and for services to third parties. All revenue is recognised when earned.

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Valuation of Fixed Assets

Fixed assets are stated at the cost of purchase less accumulated depreciation.

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Financial Instruments

Revenues and expenses in relation to all financial instruments are recognised in the Statement of Financial Performance at historical cost. All financial instruments are recognised in the Statement of Financial Position at fair value.

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Taxation

Government departments are exempt from the payment of income tax in terms of the Income Tax Act 1996. Accordingly, no charge for income tax has been made.

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Employee Entitlements

Provision is made for annual leave, which is determined on an actual entitlement basis at current rates of pay. Provision is also made for salary payments due but not yet paid to employees.

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