15 Kohitaatea 2025
Te Rua Mahara o te Kāwanatanga Archives New Zealand,
10 Mulgrave Street, Wellington
Phone +64 499 5595
David Scott
Website
s www.archives.govt.nz
fyi-request-29398-
www.dia.govt.nz
[email address]
E te rangatira e David, teenaa koe
Government accounting rules requiring capital investment for digitisation
Thank you for your email, received on 1 December 2024, requesting information under the
Official Information Act 1982 (the Act).
You have requested:
“Could you provide more details about the government’s accounting rules that classify
digitised material as an asset requiring capital investment? I am seeking an accountancy-
focused explanation so that I can assess whether this classification might impact the
digitization of material by other government agencies. Additionally, please clarify what is
meant by "digitisation" in this context, including examples.”
Te Rua Mahara o te Kaawanatanga Archives New Zealand (Te Rua Mahara) adheres to the
Asset Accounting Policy in use by Te Tari Taiwhenua Department of Internal Affairs (the
Department). It is standard accounting practice that where an asset is created, it is paid for
by capital expenditure. The requirements for the use of capital and operational expenditure
are all-of-government accounting rules, set by The Treasury according to the Public Finance
Act 1989.
Assets are a resource or item owned by the Department or the Crown, with a lifespan of
more than one year, that contribute to the Department being able to provide the goods and
services that the Department is funded for, or that the Crown holds for the public good.
Departmental assets are assets that the Department has ownership and control over and
are used to support its services and activities, for example buildings, office furniture, and
software licences. Non-Departmental assets are assets the Department manages on behalf
of the Crown, for example the National Library and Te Rua Mahara holdings, and Ministerial
residences.
Kia pono ai te rua Mahara – Enabling trusted government information
Auckland Regional Office, 95 Richard Pearse Drive, Mangere, Auckland
Christchurch Regional Office, 15 Harvard Avenue, Wigram, Christchurch
Dunedin Regional Office, 556 George Street, Dunedin
In the Department’s Asset Accounting Policy, ‘digitisation’ (or ‘digitising records’ specifically)
is defined as the process of creating a digital copy of an original document or collection
item, that will create a digital intangible asset. The policy applies
PBE IPSAS 31 Intangible
Assets accounting standard for the recognition of digital assets. A copy of the standard from
the External Reporting Board can be found by the link below:
https://www.xrb.govt.nz/standards/accounting-standards/public-sector-
standards/standards-list/pbe-ipsas-31/
Digital intangible assets can be Departmental or Non-Departmental, depending on their
origin and original file format. In general, where the Department digitises records from Non-
Departmental heritage collections, the digital intangible asset created would meet the
definition of a Departmental asset.
However, when the Department is digitising an item expected to replace the original (e.g.
audio-visual collections, where an original item has a limited lifespan due to degradation) or
receives a digital transfer of ‘born-digital’ archives, for example, then the digital intangible
asset would meet the definition of a Non-Departmental asset. These assets would be
accessioned into Te Rua Mahara’s holdings.
Our digitisation programme Te Maeatanga, including Te whakamatihiko-aa-tono Digitisation
on demand user-paid service, received capital funding for the creation of Departmental
digital intangible assets for access. This was funded by Crown capital until 30 June 2023 and
then funded by internal Department capital until 30 June 2024. No further funding was
available.
The Department has recently changed its accounting treatment of digital intangible assets
by reassessing the estimated useful life of these assets. More information can be found on
page 116 of the 2023/2024 Internal Affairs Annual Report, which can be accessed by the link
below:
https://www.dia.govt.nz/diawebsite.nsf/Files/2023-24-DIA-Annual-Report/$file/2023-2024-
Internal-Affairs-Annual-Report.pdf
Please contac
t [email address] if you have any questions about this response.
Please note that in cases where our response provides information that is identified to be of
public interest, the response may also be published on the Department’s website. If the
Department publishes its response to your request under the Act, all personal information,
including your name and contact details, will be removed.
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You have the right under section 28 of the Act to seek an investigation and review by the
Ombudsman of this decision. Information about how to make a complaint can be found at
https://www.ombudsman.parliament.nz/ or freephone 0800 802 602.
Ngaa mihi, naa
Taila Roth
Acting Poumanaaki Chief Archivist
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