Financial Statements of Waikato River Authority
for the period ended 30 June 2012
loss is reversed. The reversal does not result in a carrying amount of the
financial asset that exceeds what the amortised cost would have been had
the impairment not been recognised at the date the impairment is reversed.
The amount of the reversal is recognised in the statement of comprehensive
income.
An impairment loss in respect of goodwill is not reversed. In respect of other
assets, impairment losses recognised in prior periods are assessed at each
reporting date for any indications that the loss has decreased or no longer
exists. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss is
reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.
d) Revenue
Revenue is measured at the fair value of the consideration received or receivable.
i) Government grants
Grants received from the government are the primary source of funding to
the Authority and are restricted for the purposes of the Authority meeting
its objectives as specified in the Waikato-Tainui Raupatu Claims (Waikato
River) Settlement Act 2010. Government grants are recognised as revenue
when they become receivable unless there is an obligation to return the
funds if conditions of the grant are not met. If there is such an obligation, the
grants are initially recorded as grants received in advance and recognised as
revenue when conditions of the grant are satisfied.
ii) Interest
Interest income is recognised using the effective interest method.
e) Lease payments
Payments made under operating leases are recognised in profit or loss on a
straight-line basis over the term of the lease. Lease incentives received are
recognised as an integral part of the total lease expense, over the term of the
lease.
f) Finance income and expenses
Finance income comprises interest income on funds invested, dividend income
and gains on the disposal of available-for-sale financial assets. Interest income
is recognised as it accrues, using the effective interest method. Dividend
income is recognised on the date that the Authority’s right to receive payment is
established.
Finance expenses comprise interest expense on borrowings, unwinding of
discount on provisions, changes in the fair value of financial assets at fair value
through profit or loss and impairment losses recognised on financial assets
(except for trade receivables).
g) Income tax
In accordance with section CW 41(5)(a) of the Income Tax Act 2007 the Waikato
River Authority has been granted exemption from income tax as outlined in
section 32(5) of the Waikato-Tainui Raupatu Claims (Waikato River) Settlement
Act 2010. The Authority has been granted charitable status by the Charities
Commission and is registered as a charity.
h) Goods and Service Tax
The entity is not registered for GST purposes and therefore the financial
statements have been prepared on a GST inclusive basis.
i) Standards, amendments and interpretations issued that are not yet effective and have not
been early adopted
Standards amendments and interpretations that are not yet effective and have
not been early adopted, and which are relevant to the Authority include:
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