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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For assets not carried at a revalued amount, the total impairment loss is
recognised in the surplus or deficit.
The reversal of an impairment loss on a revalued asset is credited to other
comprehensive income and increases the asset revaluation reserve for that class
of asset. However, to the extent that an impairment loss for that class of asset
was previously recognised in the surplus or deficit, a reversal of the impairment
loss is also recognised in the surplus or deficit.
For assets not carried at a revalued amount (other than goodwill), the reversal of
an impairment loss is recognised in the surplus or deficit.
i)
Provisions
A provision is recognised for future expenditure of uncertain amount or timing
when there is a present obligation (either legal or constructive) as a result
of a past event, it is probable that expenditure will be required to settle the
obligation, and a reliable estimate can be made of the amount of the obligation.
Provisions are not recognised for future operating losses.
Provisions are measured at the present value of the expenditure expected to
be required to settle the obligation using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific
to the obligation. The increase in the provision due to the passage of time is
recognised in “finance income.”
j) Income tax
In accordance with schedule 5 of Waikato-Tainui Raupatu Claims (Waikato River)
Settlement Act 2010 the trust has been granted exemption from income tax.
Income tax Act 2007 section CW 41 specifies non business income will exempt
for tax. The trust has been granted charitable status by the Charities Commission
and is registered as a charity.
k) Goods and Service Tax
All items are stated exclusive of GST except for receivables and payables, which
are presented on a GST inclusive basis.
The net GST paid to, or received from the IRD, including the GST relating to
investing and financing activities, is classified as an operating cash flow in the
statement of cash flows.
Commitments and contingencies are disclosed exclusive of GST.
In 2012 the entity registered for GST during the year and taxable activity started
1 April 2012 therefore the financial statements in 2012 have been prepared on a
GST exclusive basis from 1 April. Prior to this date the financial statements have
been prepared on a GST inclusive basis.
l) Critical accounting estimates and assumptions
In preparing these financial statements, the Trust has made estimates and
assumptions concerning the future.
These estimates and assumptions may differ from the subsequent actual
results. Estimates and assumptions are continually evaluated and are based on
historical experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances. The estimates and
assumptions that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial year are
discussed below:
i) Settlement funds and funding receivable
Refer to note 11
m) Standards, amendments and interpretations issued that are not yet effective and have not
been early adopted
Standards amendments and interpretations issued but not yet effective that have
not been early adopted, and which are relevant to the Trust, are:
