I am pleased to introduce our 2011 update to our New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) model financial statements for a council-controlled organisations (CCOs).

Audit New Zealand’s model financial statements highlight our profession’s latest thinking in terms of meeting financial reporting and legislative requirements, and providing essential financial statement information.

Focus

The model financial statements have been updated to reflect current good practice and changes to NZ IFRS that apply to the 30 June 2011 financial statements. The main updates to the model are explained on page 5.

The model financial statements have been prepared especially to help guide CCOs to prepare financial statements that comply with NZ IFRS. The model may also assist in reducing the costs of preparing NZ IFRS-compliant financial statements and contribute to an efficient financial statement audit.

The financial statements included in this model are only part of what is required to be included in a CCO’s annual report. The other legislative requirements for a CCO’s annual report are set out in sections 67 to 69 of the Local Government Act 2002.

These model financial statements can be downloaded from our website www.auditnz.govt.nz.

Future updates

We will continue to update these model financial statements to reflect changes in NZ IFRS and evolving good practice in applying NZ IFRS to the CCOs.

We welcome any feedback on the application of this model to CCOs or any other comments that may help with future updates of the model financial statements. If you have any feedback or comments, please pass these to your Audit New Zealand Manager or Director.

Acknowledgements

I would like to thank the staff who have contributed to these model financial statements, particularly Brett Story, Stephen Lewis, and Robert Cox of the Accounting Technical Team.

Stephen Walker
Executive Director
June 2011