Note 15: Equity

Accounting policy

Equity is the Crown's investment in the Office and is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified as taxpayers' funds and a memorandum account.

Breakdown of equity

NoteActual
2016/17
$000
Actual
2015/16
$000
Taxpayers' funds
Balance at 1 July 6,221 6,221
Surplus/(deficit) (2,064) 976
Transfer of memorandum account net (surplus)/deficit for the year 2,332 (899)
Capital injections - -
Repayment of surplus due to the Crown 13 (268) (77)
Balance at 30 June 6,221 6,221
       
Memorandum account      
Balance at 1 July   3,244 2,345
Memorandum account net surplus/(deficit) for the year (2,332) 899
Balance at 30 June 912 3,244
Total equity 7,133 9,465

Memorandum account

Actual
2016/17
$000
Actual
2015/16
$000
Audit and assurance services
Balance at 1 July 3,244 2,345
Revenue 76,583 78,335
Expenses (78,915) (77,436)
Surplus/(deficit) for the year (2,332) 899
Balance at 30 June 912 3,244

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 13).

The memorandum account assists the Office to manage fluctuating revenue flows and assist with keeping audit fees at reasonable levels over time. The memorandum account balance will be taken into account when setting audit fees in future years.