Statement of Intent 2013 to 2016 - Human Rights Commission

More documents

Recommendations

Info

46 HUMAN RIGHTS COMMISSION | STATEMENT OF INTENTValue in use is depreciated replacement cost for an assetwhere the future economic benefits or service potentialof the asset are not primarily dependent on the asset’sability to generate net cash inflows and where the entitywould, if deprived of the asset, replace its remaining futureeconomic benefits or service potential.If an asset’s carrying amount exceeds its recoverableamount, the asset is impaired and the carrying amountis written down to the recoverable amount. The totalimpairment loss is recognised in the surplus or deficit. Areversal of the impairment loss is also recognised in thesurplus or deficit.Intangible assets that have an indefinite useful life arenot subject to amortisation and are tested annually forimpairment. An intangible asset that is not yet availablefor use at the balance sheet date is tested for impairmentannually.Creditors and other payablesCreditors and other payables are initially measured at fairvalue and subsequently measured at amortised cost usingthe effective interest method.BorrowingsBorrowings are initially recognised at their fair value.After initial recognition, all borrowings are measured atamortised cost using the effective interest method.Borrowings are classified as current liabilities if theborrowings are expected to be settled within 12 months ofbalance date. All other borrowings are classified as a noncurrentliability.Employee entitlementsShort-term employee entitlementsEmployee benefits that are due to be settled within 12months after the end of the period in which the employeerenders the related service are measured at nominal valuesbased on accrued entitlements at current rates of pay. Theseinclude salaries and wages accrued up to balance date andannual leave earned but not yet taken at balance date.Long-term employee entitlementsEmployee benefits that are due to be settled beyond 12months after the end of the period in which the employeerenders the related service, such as long service leave andretirement leave, have been calculated on an actuarialbasis. The calculations are based on:1 likely future entitlements accruing to staff, based onyears of service, years to entitlement, the likelihoodthat staff will reach the point of entitlement andcontractual entitlements information2 the present value of the estimated future cash flows.Presentation of employee entitlementsAccrued salaries and wages, annual leave and vested longservice leave are classified as a current liability. Non-vestedlong service leave and retirement leave expected to besettled within 12 months of balance date are classifiedas a current liability. All other employee entitlements areclassified as a non-current liability.Superannuation schemesDefined contribution schemesObligations for contributions to KiwiSaver, the GovernmentSuperannuation Fund and the Pension National Scheme ofthe National Provident Fund are accounted for as definedcontribution schemes and are recognised as an expense inthe surplus or deficit as incurred.Defined benefit schemesThe Commission currently does not make contributions todefined benefit schemes.ProvisionsA provision is recognised for future expenditure of anuncertain amount or timing when there is a presentobligation (either legal or constructive) as a result of a pastevent, it is probable that an outflow of future economicbenefits will be required to settle the obligation anda reliable estimate can be made of the amount of theobligation.Provisions are measured at the present value of theexpenditure expected to be required to settle the obligationusing a discount rate that reflects current marketassessments of the time value of money and the risksspecific to the obligation. The increase in the provision dueto the passage of time is recognised as an interest expenseand is included in finance costs.
HUMAN RIGHTS COMMISSION | STATEMENT OF INTENT47CommitmentsExpenses yet to be incurred on non-cancellable contractsthat have been entered into on or before balance dateare disclosed as commitments to the extent that there areequally unperformed obligations.Cancellable commitments that have penalty or exit costsexplicit in the agreement on exercising that option to cancelare disclosed at the value of that penalty or exit cost.Accumulated FundsAccumulated funds are the Government’s investment in theCommission and are measured as the difference betweentotal assets and total liabilities.Goods and services tax (GST)All items in the financial statements are stated exclusive ofGST, except for receivables and payables, which are statedon a GST inclusive basis. Where GST is not recoverable asinput tax, then it is recognised as part of the related asset orexpense.The net amount of GST recoverable from, or payable to,the Inland Revenue Department (IRD) is included as partof receivables or payables in the statement of financialposition.The net GST paid to, or received from the IRD, including theGST relating to investing and financing activities, is classifiedas an operating cash flow in the statement of cash flows.Commitments and contingencies are disclosed exclusiveof GST.Income taxThe Commission is a public authority and consequently isexempt from the payment of income tax. Accordingly, nocharge for income tax has been provided for.Project costsDirect costs are those costs that are directly attributable toan output and these costs are charged to the relevant projectactivity and reported in the statement of comprehensiveincome as project expenditure.Indirect costs are those costs that cannot be identifiedaccurately to a specific output and are not allocated to theCommission’s project activities.Critical accounting estimates andassumptionsIn preparing these financial statements the Commissionhas made estimates and assumptions concerning thefuture. These estimates and assumptions may differ fromthe subsequent actual results. Estimates and assumptionsare continually evaluated and are based on historicalexperience and other factors, including expectations offuture events that are believed to be reasonable under thecircumstances. The estimates and assumptions that havea significant risk of causing material adjustment to thecarrying amount of assets and liabilities within the nextfinancial year are discussed below:Useful lives of property, plant andequipment and intangible assetsManagement has made an estimate as to the useful livesand residual amounts in respect of property, plant andequipment and intangibles. Assessing the appropriatenessof useful life and residual value estimates of property,plant and equipment requires a number of factors to beconsidered such as the physical condition of the asset,expected period of use of the asset by the Commission,and expected disposal proceeds from the future sale of theasset. An incorrect estimate of the useful life or residualvalue will affect the depreciation expense recognised in thesurplus or deficit and carrying amount of the asset in thestatement of financial position.Critical judgments in applying theCommission’s accounting policiesManagement has exercised the following critical judgementin applying accounting policies:Lease classificationDetermining whether a lease agreement is a finance leaseor an operating lease requires judgement as to whether theagreement transfers substantially all the risks and rewardsof ownership to the Commission.Judgement is required on various aspects that include, butare not limited to, the fair value of the leased asset, theeconomic life of the leased asset, whether or not renewaloptions are included in the lease term, and determining anappropriate discount rate to calculate the present value ofthe minimum lease payments. Classification as a finance
Page 5 and 6: HUMAN RIGHTS COMMISSION | STATEMENT
Page 27: HUMAN RIGHTS COMMISSION | STATEMENT
Page 30 and 31: 28 HUMAN RIGHTS COMMISSION | STATEM
Page 47: HUMAN RIGHTS COMMISSION | STATEMENT

Statement of Intent 2013 to 2016 - Human Rights Commission

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?