Goods and services tax (GST) All items in the financial statements are stated exclusive of GST, except for receivables and payables, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax it is recognised as part of the related asset or expense. to the carrying amount of assets and liabilities within the next financial year are discussed below: Estimating useful lives and residual values of property, plant and equipment and intangible assets The Commission is a public authority and consequently is exempt from the payment of income tax. Management has made an estimate as to the useful lives and residual amounts in respect of property, plant and equipment and intangible assets. Assessing the appropriateness of useful life and residual value estimates of property, plant and equipment requires a number of factors to be considered such as the physical condition of the asset, expected period of use of the asset by the Commission, and expected disposal proceeds from the future sale of the asset. An incorrect estimate of the useful life or residual value will affect the depreciation or amortisation expense recognised in the surplus or deficit in the statement of comprehensive income and carrying amount of the asset in the statement of financial position. Notes 11 and 12 detail the carrying amounts of property, plant and equipment and intangible assets respectively Budget figures Retirement and long service leave The budget figures are derived from the Commission’s Statement of Intent for the financial year being reported on and were prepared in accordance with NZ GAAP using accounting policies that are consistent with those adopted by the Board in preparing these financial statements. When presentation or classification of items in the financial statements is amended or accounting policies are changed voluntarily, the budget figures are restated to ensure consistency with the current period unless it is impracticable to do so. Note 10 details the critical estimates and assumptions made in relation to retirement and long service leave liabilities. The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the statement of financial position. The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST. Income tax Comparative information When presentation or classification of items in the financial statements is amended or accounting policies are changed voluntarily, comparative figures are restated to ensure consistency with the current period unless it is impracticable to do so. Critical accounting estimates and assumptions In preparing these financial statements the Commission has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing material adjustment 81