www.
waikatoriver
.org.nz
NZ IFRS 9 Financial Instruments
NZ IFRS 9 Financial Instruments will eventually replace NZIAS 39
Financial Instrument: Recognition and Measurement. NZIAS 39 is being
replaced through the following 3 main phases: Phase 1 Classification and
Measurement, Phase 2 Impairment Methodology, Phase 3 Hedge Accounting.
Phase 1 on the classification and measurement of financial assets 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 difference rules in NZIAS 39. The approach in NZ IFRS 9 is based on
how an entity manages its financial instruments (its business model) and
the contractual cash flow characteristics of the financial assets. The financial
liability requirements are the same as those of NZIAS 39, except for when
an entity elects to designate a financial liability at fair value through the
surplus/deficit. The new standard is required to be adopted for the year
ended 30 June 2016. However, as a new Accounting Standard Framework will
apply before this date, there is no certainty when an equivalent standard to
NZ IFRS 9 will be applied by public benefit entities.
The Minister of Commerce has approved a new Accounting Standards Framework
(incorporating a Tier Strategy) developed by the External Reporting Board (XRB).
Under this Accounting Standards Framework, the Authority is classified as a Tier 2
reporting entity and it will be required to apply Public Benefit Entity Accounting
Standards (PAS) with reduced disclosure requirements. The effective date for the
new standards for public sector entities is expected to be for reporting periods
beginning on or after 1 July 2014. This means the Authority expects to transition
to the new standards in preparing its 30 June 2015 financial statements. The
Authority has not assessed the implications of the new Accounting Standards
Framework at this time.
Due to the change in the Accounting Standards Framework for public benefit
entities, it is expected that all new NZ IFRS and amendments to existing NZ
IFRS will not be applicable to public benefit entities. Therefore, the XRB has
effectively frozen the financial reporting requirements for public benefit entities
up until the new Accounting Standard Framework is effective. Accordingly, no
disclosure has been made about new or amended NZ IFRS that exclude public
benefit entities from their scope.
4 Determination of fair values
A number of the Authority’s accounting policies and disclosures require the
determination of fair value, for both financial and non-financial assets and liabilities.
Where applicable, further information about the assumptions made in determining
fair values is disclosed in the notes specific to that asset or liability.
5 Government grants
2013
2012
Government grant received
910,000
910,000
Government grant received on behalf of
Waikato River Clean Up Trust
(910,000)
(607,368)
-
302,632
The Crown provides $910,000 directly to the Waikato River Authority to cover
reasonable operational costs for the Waikato River Authority and Waikato River Clean
Up Trust. $607,368 of the total funds were applied to operational costs incurred by
Waikato River Clean Up Trust in 2012. This year all operational funds were used to
cover operational costs by Waikato River Clean Up Trust
There are no unfulfilled conditions and other contingencies attached to subsidies
and grants recognised.
Waikato River Authority
Annual Report
2012
19
