Financial Statements of Waikato River Clean-Up Trust
for the period ended 30 June 2013
Restoring and protecting the health and wellbeing of the Waikato River
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specific to the obligation. The increase in the settlement grants due to the
passage of time is recognised in “finance income”.
Grants received from the government are the primary source of funding
to the Trust and are restricted for the purposes of the Trust 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) Services
Revenue from services rendered is recognised in profit or loss in proportion
to the stage of completion of the transaction at the reporting date. The stage
of completion is measured with reference to the project milestones.
iii) Interest
Interest income is recognised using the effective interest method.
d) 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 Trust’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).
e) Grant expenditure
Grants are those grants awarded if the grant application meets the specified
criteria and have been approved by the board. These are recognised as
expenditure based on the deliverables and timeframe set out in the signed
funding deeds.
All grants (over and under $50,000) will be recognised as an expenses when a
milestone is met, including a provision for costs incurred between milestones.
Grants that are not recognised are recorded as funding commitments.
f) Property, plant and equipment
Property, plant, and equipment consists of the following asset classes: office
equipment.
The assets classes are measured at cost, less accumulated depreciation and
impairment losses.
Additions
The cost of an item of property, plant, and equipment is recognised as an asset
only when it is probable that future economic benefits or service potential
associated with the item will flow to the Trust and the cost of the item can be
measured reliably.
In most instances, an item of property, plant, and equipment is initially
recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost,
it is recognised at its fair value as at the date of acquisition.
Disposals
Gains and losses on disposals are determined by comparing the proceeds with
the carrying amount of the asset. Gains and losses on disposals are reported net
in the surplus or deficit. When revalued assets are sold, the amounts included in
revaluation reserves in respect of those assets are transferred to general funds.
Subsequent costs
Costs incurred subsequent to initial acquisition are capitalised only when it is
probable that future economic benefits or service potential associated with the
