© The Treasury

Accruals at 25 Lessons from New Zealand

Angela Ryan Principal Accounting Advisor

New Zealand Treasury

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© The Treasury

The Mother of All Budgets 1991

Prime Minister Jim Bolger and Minister of Finance, Ruth Richardson

© The Treasury

© The Treasury

© The Treasury

© The Treasury

© The Treasury

25 years on

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Lessons 25 years on…

1.Target users’ needs and objectives

2.Welcome the pain and use it!

3.Moving from stability to resilience

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Target users’ needs & objectives

© The Treasury

1992

© The Treasury

Fiscal Responsibility Act 1994 General principles: • Debt should be reduced to prudent levels

• Operating expenses should not exceed operating

revenues over a reasonable period

• Crown net worth should be maintained at sufficient levels to counter adverse events

• The fiscal risks facing the government should be managed prudently, and

• Fiscal policies should be consistent with predictable stable tax rates

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© The Treasury

© The Treasury

Welcome the pain and use it!

© The Treasury

South Auckland Prison

Transmission Gully – North of Wellington

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Stability to Resilience

© The Treasury

Stability to Resilience

-5,000

15,000

35,000

55,000

75,000

95,000

115,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

IFRS, June Years

Global Financial Crisis

Canterbury Earthquakes

Net Worth of the Government of New Zealand $m

© The Treasury

© The Treasury

For further information

• Visit The Treasury’s webpage http://www.treasury.govt.nz/

• Or contact us by e-mail: angela.ryan@treasury.govt.nz or ken.warren@treasury.govt.nz