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The Government published today (December 28) its accrual-based consolidated accounts for the financial year 2009-10.
A government spokesman said that the accrual-based accounts differed from the cash-based ones in the purposes they served. "The cash-based accounts serve mainly to demonstrate that public money has been paid within the limits and ambits approved by the legislature. The accrual-based accounts, on the other hand, aim to present more comprehensive information on the financial position and performance of the Government," he said.
"The cash-based accounts consolidate the General Revenue Account (GRA) and the funds established under section 29 of the Public Finance Ordinance except the Bond Fund, the balance of which is not part of the fiscal reserves. In addition to the GRA and funds consolidated in the cash-based accounts, the accrual-based accounts include the Exchange Fund, the Housing Authority, government business enterprises such as MTR Corporation Limited and Kowloon-Canton Railway Corporation, and other government funds such as the Bond Fund and the Quality Education Fund. There are also more comprehensive disclosures of the Government's assets and liabilities in the accrual-based accounts, e.g. fixed assets, the provision for pensions, and government debts," he continued.
The key figures shown in the accrual-based accounts as compared with those in the cash-based accounts are highlighted below -
2009-10
Cash-based Accrual-based
($ billion) ($ billion)
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Financial results
* Fiscal surplus 25.9
* Net surplus 141.7
Reserves
* Fiscal Reserves 520.3
* General Reserve 379.5
* Exchange Fund Reserve 553.4
* Capital Expenditure Reserve 300.3
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520.3 1,233.2
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Net assets 520.3 1,233.2
The accrual-based Consolidated Statement of Financial Performance reports a surplus of $141.7 billion, whereas the cash-based accounts show a surplus of $25.9 billion. This is mainly due to the inclusion of the surplus of the Exchange Fund and the share of surpluses from government business enterprises, partly offset by the provision for pension liabilities in arriving at the accrual-based surplus.
According to the accrual-based Consolidated Statement of Financial Position, the Government's net assets were $1,233.2 billion as at March 31, 2010. These net assets were represented by three reserves: the General Reserve of $379.5 billion, the Exchange Fund Reserve of $553.4 billion and the Capital Expenditure Reserve of $300.3 billion. Notwithstanding these, the cash resources available for Government spending remain to be the Fiscal Reserves, which stood at $520.3 billion as at March 31, 2010.
"The General Reserve represents the net financial assets of the Government. The Exchange Fund Reserve refers to the net assets of the Exchange Fund, the use of which is governed by the Exchange Fund Ordinance, whereas the Capital Expenditure Reserve represents money already spent on fixed assets," the Government spokesman explained.
"The Government's General Reserve as at March 31, 2010 was $379.5 billion, $140.8 billion less than the Fiscal Reserves of $520.3 billion reported in the cash-based accounts. The difference arises because the net financial assets of the Government in the accrual-based accounts take into account the Government's liabilities such as government bonds and notes, pensions and untaken leave of staff, offset partly by financial assets such as investments in MTR Corporation Limited and the Airport Authority," he continued.
The public can access the accrual-based and the cash-based accounts at the Treasury's website: www.try.gov.hk.
Ends/Tuesday, December 28, 2010
Issued at HKT 16:34
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