Annual Report 2010 - Royal New Zealand Ballet

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28 /Annual Report 2010NOTES TO THE FINANCIAL STATEMENTS(iv)Non-cash sponsorshipWhere donations and sponsorship are provided by way of goods and services they arerecognised in the statement of comprehensive income at the fair value of the goods andservices received as revenue and in the appropriate expense categories in the period this isincurred.(v) Box office revenue and production expensesRevenue earned from productions is accounted for in the period of the final performanceof the production. Apportionment is made between accounting periods if the productioncommences its tour before the end of the current period and completes its finalperformance in the next period.All revenue received and expenditure incurred on productions which are to commencesubsequent to period end are included in the statement of financial position as revenue andcosts relating to future productions.If it is probable that total production costs will exceed total projected revenue, the expectedloss is recognised as an expense immediately.(vi)DonationsDonations are recognised when received and included in the statement of comprehensiveincome as sponsorship and donations.(d)Goods and Services Tax (GST)The statement of comprehensive income is prepared so that all components are statedexclusive of GST. All items in the statement of financial position are stated net of GST, withthe exception of receivables and payables, which include GST invoiced.(e)Income taxThe Ballet as presently constituted is not liable for income tax as it is deemed a charitabletrust for taxation purposes.(f ) LeasesLeases in which a significant portion of the risks and rewards of ownership are retained bythe lessor are classified as operating leases. Payments made under operating leases (netof any incentives received from the lessor) are charged to the statement of comprehensiveincome on a straight-line basis over the period of the lease.(g)Impairment of non financial assetsAssets are reviewed for impairment whenever events or changes in circumstances indicatethat the carrying amount may not be recoverable. An impairment loss is recognised forthe amount by which the asset’s carrying amount exceeds its recoverable amount. The
Annual Report 2010\ 29NOTES TO THE FINANCIAL STATEMENTSrecoverable amount is the higher of an asset’s fair value less costs to sell and value in use.For the purposes of assessing impairment, assets are grouped at the lowest levels for whichthere are separately identifiable cash flows (cash generating units).(h)Cash and cash equivalentsCash and cash equivalents includes cash on hand, deposits held at call with financialinstitutions, other short-term, and highly liquid investments with original maturities ofthree months or less that are readily convertible to known amounts of cash and which aresubject to an insignificant risk of changes in value.(i)Trade receivablesTrade receivables are recognised initially at fair value and subsequently measured atamortised cost, less provision for doubtful debts.Collectability of trade receivables is reviewed on an ongoing basis. Debts which are knownto be uncollectible are written off. A provision for doubtful receivables is establishedwhen there is objective evidence that the Ballet will not be able to collect all amountsdue according to the original terms of receivables. The amount of the provision is thedifference between the asset’s carrying amount and the present value of estimated futurecash flows, discounted at the effective interest rate. The amount of the provision isrecognised in the statement of comprehensive income.(j)InventoriesInventories are stated at the lower of cost and net realisable value. Cost is determined ona first in, first out basis. Net realisable value is the estimated selling price in the ordinarycourse of business less the estimated costs necessary to make the sale.(k)Loans and receivablesThe Ballet classifies its financial assets as loans and receivables. Loans and receivables arenon derivative financial assets with fixed or determinable payments that are not quoted inan active market. They arise when the Ballet provides money, goods or services directly toa debtor with no intention of selling the receivable. They are included in current assets,except for those with maturities greater than 12 months after the end of the reportingperiod which are classified as non current assets. Trade receivables, bank balance and fundsheld on deposits are the only items, the Ballet holds in this category.Purchases and sales of assets are recognised on trade date – the date on which the Balletcommits to purchase or sell the asset. Loan and receivables are initially recognised atfair value plus transaction costs. They are subsequently carried at amortised cost usingthe effective interest method. Loans and receivables are derecognised when the rights toreceive cash flows from the assets have expired or have been transferred, and the Ballet hastransferred substantially all the risks and rewards of ownership.
Page 3 and 4: Annual Report 2010\ 1Chair’s Repo
Page 5 and 6: Annual Report 2010\ 3Our family of
Page 8 and 9: 6 / Annual Report 2010For the first
Page 10 and 11: 8 / Annual Report 20102010 SEASONST
Page 12 and 13: 10 / Annual Report 2010Artistic Dir
Page 14 and 15: 12 / Annual Report 2010Catherine Ed
Page 16 and 17: 14 / Annual Report 2010Guiding Prin
Page 18 and 19: 16 / Annual Report 2010The Year’s
Page 20 and 21: 18 / Annual Report 2010Sponsors and
Page 22 and 23: 20 /Annual Report 2010THE FINANCIAL
Page 24 and 25: 22 /Annual Report 2010THE FINANCIAL
Page 26 and 27: 24 /Annual Report 2010FINANCIAL STA
Page 28 and 29: 26 /Annual Report 2010NOTES TO THE
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Page 40 and 41: 38 / Annual Report 2010ProductionPr
Page 42: 40 / Annual Report 2010Royal New Ze

Annual Report 2010 - Royal New Zealand Ballet

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