Annual report 2012
Statement of
accounting policies
For the year ended
31 December 2012
Reporting entity
Te Wānanga o Aotearoa is a TEI domiciled in New Zealand
and is governed by the Crown Entities Act 2004 and the
Education Act 1989.
The primary objective of Te Wānanga o Aotearoa is to
provide full-time and part-time tertiary education as
opposed to that of making a financial return.
Te Wānanga o Aotearoa group consists of the parent,
Te Wānanga o Aotearoa, and its subsidiaries, Open
Wānanga Limited (100% owned) and the Aotearoa
Scholarship Trust (100% controlled). The subsidiaries
of Te Wānanga o Aotearoa are incorporated and
domiciled in New Zealand.
Open Wānanga Limited consists of Open Wānanga
Limited and its subsidiary, Open English Limited
(100% owned).
Te Wānanga o Aotearoa has designated itself and group
as public benefit entities for the purposes of New
Zealand Equivalents to International Financial Reporting
Standards (NZ IFRS).
The financial statements of Te Wānanga o Aotearoa and
group for the year ended 31 December 2012
were authorised for issue on 24th April 2013 by
Te Mana Whakahaere.
Statement of compliance
The financial statements of Te Wānanga o Aotearoa have
been prepared in accordance with the requirements of
the Crown Entities Act 2004 and the Education Act 1989,
which include the requirement to comply with New
Zealand Generally Accepted Accounting Practice
(NZ GAAP).
These financial statements have been prepared in
accordance with NZ GAAP as appropriate for public
benefit entities and they comply with NZ IFRS.
Measurement base
The financial statements have been prepared on a
historical cost basis except where modified by the
revaluation of artwork, land and buildings.
Functional and presentation currency
The financial statements are presented in New Zealand
dollars and all values are rounded to the nearest
thousand dollars ($’000).
The functional currency of Te Wānanga o Aotearoa and
its subsidiaries is New Zealand dollars.
Changes in accounting policies and estimates
There have been no changes in accounting policies
during the financial year.
Te Wānanga o Aotearoa has adopted the following
revisions to accounting standards during the
financial year, which have had only a presentational
or disclosure effect:
FRS-44 New Zealand Additional Disclosures and
Amendments to NZ IFRS to harmonise with IFRS and
Australian Accounting Standards (Harmonisation
Amendments) – The purpose of the new standard and
amendments is to harmonise Australian and New Zealand
accounting standards with source IFRS and to eliminate
many of the differences between the accounting
standards in each jurisdiction. The main effect of the
amendments on the organisation is that donations
are no longer required to be separately disclosed and
certain information about property valuations is no
longer required to be disclosed. Note 4 and 11 has been
updated for these changes.
Standard, amendments and interpretations
issued that are not yet effective and have not
been early adopted
Standards, amendments and interpretations issued but
not effective that have not been early adopted and which
are relevant to Te Wānanga o Aotearoa are:
NZ IFRS 9 Financial Instruments will eventually replace
NZ IAS 39 Financial Instruments: Recognition and
Measurement. NZ IAS 39 is being replaced through the
following three main phases: Phase 1 Classification and
Measurement, Phase 2 Impairment Methodology, and
Phase 3 Hedge Accounting. Phase 1 has been completed
and has been published in the new financial instrument
standard NZ IFRS 9. NZ IFRS 9 uses a single approach
to determine whether a financial asset is measured at
amortised cost or fair value, replacing the many different
rules in NZ IAS 39. The approach in NZ IFRS 9 is based on
how an entity manages its financial assets (its business
model) and the contractual cash flow characteristics of
the financial assets. The financial liability requirements
are the same as those of NZ IAS 39, except for when
an entity elects to designate a financial liability at fair
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