Waikato-Tainui Annual Report 2015

The Waikato River Clean Up Trust’s objective is the restoration and protection of the health and wellbeing of the Waikato River.

$21m was paid with an annuity payable to the Waikato River Authority of $7m per year for 27 years.

2 S umm a r y o f s i g n i f i c a n t a c c o u n t i n g p o l i c i e s

The consolidated financial statements of the group have been prepared in accordance with Generally Accepted Accounting

Practice in New Zealand (NZ GAAP). They comply with New Zealand equivalents to International Financial Reporting Standards

for Public Benefit Entities (NZ IFRS PBE) and other New Zealand standards and pronouncements that have authoritative support

within New Zealand to be applied by not-for-profit public benefit entities that apply NZ IFRS PBE. A new Accounting Standards

Framework (incorporating a Tier structure and a separate suite of accounting standards for PBEs) has been issued by the External

Reporting Board (XRB). The full impact of new Accounting Standards Framework is yet to be determined by the Group. The Group

will have to prepare its financial statements in accordance with the PBE Standards for the first time for the annual period ending

31 March 2016.

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have

been consistently applied to all the years presented, unless otherwise stated. See notes 2.2 and 31 for details on changes in

accounting policy.

2.1 Basis of preparation

The financial statements include the consolidated Group consisting of the Waikato Raupatu Lands Trust and its subsidiaries. The

Waikato-Tainui Te Kauhanganui Incorporated is the ultimate controlling party of the Group.

Statutory base

The financial statements of the Group have been prepared in accordance with the Charities Act 2005.

Historical cost convention

The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation

of farm and owner occupied properties, investment properties, Te Wherowhero investment properties, biological assets, financial

assets and liabilities (including derivative instruments) at fair value through profit or loss which are carried at fair value.

2.2 Changes in accounting policy, disclosures and comparatives

Due to the change in the Accounting Standards Framework for PBEs, new NZ IFRSs and amendments to existing NZ IFRSs do

not apply to PBEs as the XRB has effectively frozen, as at 1 July 2011, the financial reporting requirements for PBEs until PBEs

transition to the PBE Standards. Accordingly, no disclosure has been made about new or amended NZ IFRSs that exclude PBEs

from their scope.

Change in accounting policy

The Trust changed its accounting policy for accounting for interests in joint ventures. NZ IAS 31 (PBE) provides for all joint

ventures to be equity accounted. The Group’s strategy is to invest for the short term in joint venture activities, hence the move

to equity accounting provides reliable and more relevant information about the effect of such transactions. The impact of this

change in accounting policy is provided in note 31.

2.3 Critical accounting estimates

The preparation of financial statements in conformity with NZ IFRS PBE requires the use of certain critical accounting

estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies.

The estimates and judgements are reviewed by management on an ongoing basis. Revisions to accounting estimates are

recognised in the period in which the estimate is revised. The following are the critical estimates and judgements management

has made in the process of applying the Group’s accounting policies and that have the most significant impact on the amounts

recognised in the financial statements.

waikato-tainui

annual report 2015