Aktive Annual Report 2015/16

36 Aktive Annual Report 2015/2016
STATEMENT OF ACCOUNTING POLICIES
For the year ended 30 June 2016
1.1 BASIS OF PREPARATION
Aktive – Auckland Sport & Recreation (“Aktive”) is a Charitable Trust (legal name of Trust ‘Auckland Sport’), domiciled
in New Zealand and registered under the Charitable Trusts Act 1957. The significant accounting policies used in
the preparation of these financial statements are set out below. These financial statements have been prepared
on the basis of historical cost, as modified by the fair value measurement of non-derivative financial instruments.
These financial statements have been prepared in accordance with Generally Accepted Accounting Practice in
New Zealand (“NZ GAAP”). It complies with Public Benefit Entity International Public Sector Accounting Standards
(“PBE IPSAS”) and other applicable financial reporting standards as appropriate that have been authorised for use
by the External Reporting Board for Not-For-Profit entities. For the purposes of complying with NZ GAAP, Aktive is a public
benefit not-for-profit entity and is eligible to apply Tier 2 Not-For-Profit PBE IPSAS on the basis that it does not have
public accountability and it is not defined as large. The Board of Trustees has elected to report in accordance with
Tier 2 Not-For-Profit PBE Accounting Standards and in doing so has taken advantage of all applicable Reduced Disclosure
Regime (“RDR”) disclosure concessions.
Effect of first-time adoption of PBE standards on accounting policies and disclosures
These are the first financial statements of Aktive that are presented in accordance with PBE standards.
Aktive has previously reported in accordance with old GAAP as defined by Financial Reporting Standards and applicable
Statements of Standard Accounting Practice. Aktive has taken advantage of the exemption for the first time application
of PBE standards not to provide comparative values. Prior year audited financial statements can be found on Aktive’s
website at www.aktive.org.nz. The accounting policies adopted in these financial statements are consistent with those
of the previous financial year, except for instances when the accounting or reporting requirements of a PBE standard are
different to requirements under old GAAP as outlined below. The changes to accounting policies and disclosures caused
by first time application of PBE accounting standards are as follows:
PBE IPSAS 1 - Presentation of financial statements
There are minor differences between PBE IPSAS 1 and the equivalent standard under old GAAP. These differences have an
effect on disclosure only. The main changes in disclosure resulting from the application of PBE IPSAS 1 are the following:
Receivables from exchange and non-exchange transactions:
In the financial statements of the previous financial year, receivables were presented as a single total in the statement
of financial position. However, PBE IPSAS 1 requires receivables from non-exchange transactions and receivables
from exchange transactions to be presented separately in the statement of financial position.
PBE IPSAS 23 - Revenue from non-exchange transactions
PBE IPSAS 23 prescribes the financial reporting requirements for revenue arising from non-exchange transactions.
There is no equivalent financial reporting standard under old GAAP. The application of this standard affected Aktive’s
accounting for funding and grants revenue. In the previous financial year, grants received in relation to the provision
of a service were recognised as revenue on a percentage of completion basis. However, PBE IPSAS 23 requires revenue
from non-exchange transactions, such as grants, to be recognised as revenue as they are received, unless the grant
meets the definition of and recognition criteria for a liability. Non-exchange revenue from grants can only be deferred
and recognised as a liability if there is a condition attached to the grant that require an entity to use the grant as specified
or return of the grant if the entity does not perform as specified. The ‘Accumulated comprehensive revenue and expense’
reserve in the ‘Statement of financial position’ has increased from that disclosed in the previous financial year due to
this different grant treatment.
PBE IPSAS 2 - Cash flow statement
A statement of cash flows has been prepared.