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Financial Statements of Waikato River Authority
for the period ended 30 June 2014
Notes to the Financial Statements
for the period ended 30 June 2014
1 Reporting entity
The Waikato River Authority has been established by virtue of the provision of
section 22(1) of the Waikato-Tainui Raupatu Claims (Waikato River) Settlement
Act 2010 and section 23 (1) of the Ngati Tuwharetoa, Raukawa, and Te Arawa River
Iwi Waikato River Act 2010. These financial statements have been prepared in
accordance with the schedule 5 of the Waikato-Tainui Raupatu Claims (Waikato
River) Settlement Act 2010.
The Waikato River Authority has been established to restore and protect the health
and wellbeing of the Waikato River for future generations. Accordingly the Waikato
River Authority has designated itself as a public benefit entity for the purposes of
New Zealand equivalents to International Financial Reporting Standards (“NZ IFRS”).
The financial statements were approved by the Trustees on 30 September 2014.
2 Basis of preparation
a) Statement of compliance
These financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (“NZ GAAP”). They comply with NZ IFRS,
and other applicable Financial Reporting Standards, as appropriate for public
benefit entities.
b) Basis of measurement
The financial statements have been prepared on the historical cost basis.
c) Functional and presentation currency
These financial statements are presented in New Zealand dollars ($), which is the
Waikato River Authority’s functional currency.
d) Use of estimates and judgements
The preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimate is revised and in any future periods affected.
3 Significant accounting policies
a) Financial instruments
i) Non-derivative financial instruments
Non-derivative financial instruments comprise investments in term deposits,
trade and other receivables, cash and cash equivalents and trade and other
payables.
Non-derivative financial instruments are recognised initially at fair value
plus, for instruments not at fair value through Statement of Comprehensive
Income, any directly attributable transaction costs. Subsequent to initial
recognition non-derivative financial instruments are measured as described
below.
A financial instrument is recognised if the Authority becomes a party to the
contractual provisions of the instrument. Financial assets are derecognised
if the Authority’s contractual rights to the cash flows from the financial
assets expire or if the Authority transfers the financial asset to another
party without retaining control or substantially all risks and rewards of the
asset. Purchases and sales of financial assets are accounted for at trade date,
i.e., the date that the Authority commits itself to purchase or sell the asset.
Restoring and protecting the health and wellbeing of the Waikato River
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