53 TE PŪRONGO 2013
For the year ended 31 December 2013
1. Statement of accounting policies
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.
Te Wānanga o Aotearoa group consists of Te Wānanga o
Aotearoa, and its subsidiaries, Open Wānanga Limited (100%
owned) and the Aotearoa Scholarship Trust (100%controlled).
The subsidiaries are incorporated and domiciled in New
Zealand. Open Wānanga Limited consists of Open Wānanga
Limited and its subsidiary, DynaSpeak Limited (formerly 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 primary purpose of Te Wānanga o Aotearoa is to
provide tertiary education.
The financial statements cover all of the activities pertaining
to an educational and research institution including but not
limited to:
• The provision of student services and the facilitating of
student activities, including scholarships.
• The activities of a researcher, developer, publisher,
property owner, occupier including tenant or landlord,
trustee, provider of accommodation, early childhood
services, conferences, exhibitions, recreation facilities,
sponsorship and hireage.
• And any other activity or occupation incidental to an
educational and research institution.
The financial statements of Te Wānanga o Aotearoa and group
are for the year ended 31 December 2013. The financial
statements were authorised for issue on 30 April 2014 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 and they comply with NZ IFRS as appropriate
for public entities.
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.
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 value through the surplus
or deficit. The new standard is required to be adopted for the
year ended 31 December 2016. However, as a new Accounting
Standards 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, Te Wānanga o Aotearoa is
classified as a Tier 1 reporting entity and it will be required
to apply full Public Benefit Entity Accounting Standards (PAS).
The effective date for the new standards for public sector
entities will be for reporting periods beginning on or after 1
July 2014. This means Te Wānanga o Aotearoa will transition
to the new standards in preparing its 31 December 2015
financial statements. Te Wānanga o Aotearoa has not yet
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 Standards Framework
is effective. Accordingly, no disclosure has been made about
new or amended NZ IFRS that exclude public benefit entities
from their scope.
Notes to the
financial statements
