Annual Report 2016-2017

44 Aktive Annual Report 2016/2017
STATEMENT OF ACCOUNTING POLICIES
For the year ended 30 June 2017
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”). They comply 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.
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 have been complied with. Where there
are unfulfilled conditions attached to the grant, the amount relating to the unfulfilled conditions 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.
Rendering of services
Service revenue is recognised as revenue when the service has been provided.