Waikato River Authority Annual Report
2012
31
Notes to the Financial Statements for the period ended 30 June
2012
1 Reporting entity
The Waikato River Clean up Trust has been established by virtue of the provision
of section 32 (2) of the Waikato-Tainui Raupatu Claims (Waikato River) Settlement
Act 2010 and section 33 (2) of the Ngati Tuwharetoa, Raukawa, and Te Arawa River
Iwi Waikato River Act 2010. These financial statements have been prepared in
accordance with schedule 6 of the Waikato-Tainui Raupatu Claims (Waikato River)
Settlement Act 2010. Further legislation has been enacted on the 5th of April 2012
and the Trust has to meet its obligations in accordance with the Nga Wai o Maniapoto
(Waipa River) Act 2012 from the Acts establishment.
The Waikato River Clean up Trust has been established to restore and protect the
health and wellbeing of the Waikato River for future generations. Accordingly the
Waikato River Clean up Trust has designated itself as a public benefit entity for the
purposes of New Zealand equivalents to International Financial Reporting Standards
(“NZ IFRS”).
The Waikato-Tainui Raupatu Claims (Waikato River) Settlement Act 2010 was enacted
on the 25th of November 2010. The 2011 comparative figures are therefore only for
a period of 7 months and 6 days and may not be entirely comparable.
The financial statements were approved by the Trustee on 23 August 2012.
2 Basis of preparation
a) Statement of compliance
These financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (“NZ GAAP”). They comply with NZ IFRS,
and other applicable Financial Reporting Standards, as appropriate for public
benefit entities.
b) Basis of measurement
The financial statements have been prepared on the historical cost basis.
c) Functional and presentation currency
These financial statements are presented in New Zealand dollars ($), which is the
Waikato River Clean up Trust’s functional currency.
d) Use of estimates and judgements
The preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
3 Significant accounting policies
a) Financial instruments
i) Non-derivative financial instruments
Non-derivative financial instruments comprise investments in term deposits,
trade and other receivables, cash and cash equivalents and trade and other
payables.
Non-derivative financial instruments are recognised initially at fair value plus,
for instruments not at fair value through Statement of Comprehensive Income,
any directly attributable transaction costs. Subsequent to initial recognition
non-derivative financial instruments are measured as described below.