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The Government published today (December 28) its accrual-based consolidated accounts for the financial year 2010-11.
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 performance and position 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 the 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 and 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:
2010-11
Cash-based Accrual-based
(HK$billion) (HK$billion)
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Financial results
* Fiscal surplus 75.1
* Net surplus 96.7
Reserves
* Fiscal Reserves 595.4
* General Reserve 449.2
* Exchange Fund Reserve 603.5
* Capital Expenditure Reserve 315.5
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595.4 1,368.2
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Net assets 595.4 1,368.2
The accrual-based Consolidated Statement of Financial Performance reports a surplus of HK$96.7 billion, whereas the cash-based accounts show a surplus of HK$75.1 billion. The accrual-based surplus is mainly due to the inclusion of the surpluses of the Exchange Fund, the Housing Authority and other funds as well as the share of surpluses from government business enterprises, partly offset by the provision for pension liabilities.
According to the accrual-based Consolidated Statement of Financial Position, the Government's net assets were HK$1,368.2 billion as at March 31, 2011. These net assets were represented by three reserves: the General Reserve of HK$449.2 billion, Exchange Fund Reserve of HK$603.5 billion and Capital Expenditure Reserve of HK$315.5 billion. Notwithstanding these, the cash resources available for the Government's spending remain to be the Fiscal Reserves, which stood at HK$595.4 billion as at March 31, 2011.
"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, 2011 was HK$449.2 billion, HK$146.2 billion less than the Fiscal Reserves of HK$595.4 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 the 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/Wednesday, December 28, 2011
Issued at HKT 16:31
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