Aktive Annual Report 2015/16

Aktive Annual Report 2015/2016 37
1.2 REVENUE
Revenue is recognised to the extent that it is probable that the economic benefit will flow to Aktive and revenue can
be reliably measured. Revenue is measured at the fair value of the consideration received. The following specific
recognition criteria must be met before revenue is recognised.
Revenue from non-exchange transactions
Grant revenue
Grant revenue includes grants given by the Government, other charitable organisations, philanthropic organisations
and businesses. Grant revenue is recognised when the conditions attached to the grant has been complied with.
Where there are unfulfilled conditions attaching to the grant, the amount relating to the unfulfilled condition is
recognised as a liability and released to revenue as the conditions are fulfilled.
KiwiSport
Sport New Zealand has introduced the KiwiSport Regional Partnership Fund to increase sporting participation
and opportunities for children and allow them to develop better skills. Aktive is the conduit of the KiwiSport funding
with 80% of total funding distributed to local areas within Auckland and the remaining 20% allocated to ‘regional’
use. The local portion of this fund is ultimately received by Primary Schools, Secondary Schools and Community
Organisations to deliver programmes to school aged children.
Kiwisport funding is received by Aktive in a ‘non-agent’ capacity as Aktive has control over the use of funds in terms
of the vehicle in which funds are distributed to the related regions for which it serves. Aktive also directly benefits
from the funding in the pursuit of its objectives via brand recognition and advertising. The funds are accounted for
in the statement of comprehensive revenue and expense and result in an increase in net assets.
Revenue from exchange transactions
Sponsorship in kind
Sponsorship in kind is recognised as revenue and expenses when goods or services are received.
Sponsorship in kind is measured at fair value as at the date of acquisition, ascertained by reference to
the expected cost that would be otherwise incurred.
Interest income
Interest revenue is recognised as it accrues, using the effective interest method.
1.3 FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are recognised when Aktive becomes a party to the contractual provisions
of the financial instrument.
Aktive derecognises a financial asset or, where applicable, a part of a financial asset or part of a group of similar
financial assets when the rights to receive cash flows from the asset have expired or are waived, or Aktive has
transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash
flows in full without material delay to a third party; and either:
- Aktive has transferred substantially all the risks and rewards of the asset; or
- Aktive has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred
control of the asset.