Notice No. (16) of Determination in Relation to Local Authorities Notice is hereby given, pursuant to section 29 of the Financial Reporting Act 1993 (``the Act''), that the Accounting Standards Review Board (``the board'') has determined in accordance with section 27 (3a) of the Act, that the following Approved Financial Reporting Standards shall apply to all local authorities (as defined in the Act), except where expressly exempted by the terms of a particular standard: FRS-1: Disclosure of Accounting Policies (issued 1994) FRS-2: Presentation of Financial Reports (issued 1994) FRS-4: Accounting for Inventories (issued 1994) FRS-5: Accounting for Events Occurring After Balance Date (issued 1994) FRS-9: Information to be Disclosed in Financial Statements (revised 1996) FRS-10: Statement of Cash Flows (issued 1994) FRS-13: Accounting for Research and Development Activities (issued 1995) FRS-14: Accounting for Construction Contracts (issued 1994) FRS-19: Accounting for Goods and Services Tax (issued 1994) FRS-20: Accounting for Shares Issued Under a Dividend Election Plan (issued 1994) FRS-24: Interim Financial Statements (issued 1996) FRS-26: Accounting for Defeasance of Debt (issued 1995) FRS-27: Right of Set-off (issued 1994) FRS-29: Prospective Financial Information (issued 1996) FRS-30: Reporting Share Ownership Arrangements Including Employee Share Ownership Plans (issued 1994) FRS-33: Disclosure of Information by Financial Institutions (issued 1997) The board also has determined in accordance with section 27 (3a) of the Act, that Financial Reporting Standard 7: Extraordinary Items and Fundamental Errors (issued 1994), shall apply to all local authorities, except that paragraph 5.1 shall not apply in the first year of application of FRS 7 with regard to the adoption of a new basis of valuation for the valuation of physical assets. The Financial Reporting Standards referred to above shall apply in relation to accounting periods and interim accounting periods of local authorities commencing on or after 1 July 1998, or earlier in the case of any local authority which so elects in accordance with section 27 (7) of the Act. Copies of all approved Financial Reporting Standards may be purchased from the offices of the Institute of Chartered Accountants of New Zealand, 40 Mercer Street (P.O. Box 11-342), Wellington and 2733 Ohinerau Street, Remuera (P.O. Box 3334), Auckland. Dated this 20th day of November 1997. JOHN C. HAGEN, Chairman, Accounting Standards Review Board.