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