Note 20: Memorandum account

The memorandum account summarises the accumulated surpluses and deficits incurred in the provision of audit and assurance services by the Office on a full cost recovery basis. These transactions are included as part of the Office's operating income and expenses in the surplus/deficit, but are excluded from the calculation of the Office's repayment of surplus (see Note 12). The cumulative balance of the surplus/deficit of the memorandum account is recognised as a component of equity (see Note 14).

The balance of the memorandum account is expected to trend toward zero over a reasonable period of time. The memorandum account balance will be taken into account when setting audit fees in future years.