Funding
Alan Robb would like to acknowledge a research grant from the College of Economics and Business, University of Canterbury.
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Footnotes
• ↵1 The government's financial statements for 1997 demonstrate how increases in SOEs' debt could be reported as revenue to the government. These are available athttp://www.treasury.govt.nz/pubs/fmb/CFS97/contents.htm. Note 9 explains the modified equity method of consolidation under which dividends received from SOEs are reported as revenue, and then the total net surplus/deficit of SOEs, net of the dividends already reported as revenue is shown before achieving the reported operating balance. A change in company law in 1993 removed the earlier earned income limitations on dividend payments, and this meant dividends paid could exceed reported profits, and in the case of some SOEs did exceed reported profits (see Note 9, there).