APO Annual Report 2020

APO ANNUAL REPORT 2020
AUCKLAND PHILHARMONIA TRUST
CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Notes to the Consolidated and Separate Financial Statements
4. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
ii. Revenue from exchange transactions
Subscriptions
Revenue is recognised over the period of the subscription. Amounts received in advance for subscriptions relating
to future periods are recognised as a liability until such time that period covering the subscription occurs.
Sale of goods
Revenue from merchandise sold is recognised when the significant risks and rewards of ownership have been
transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of
goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount
of revenue can be measured reliably.
Rendering of services
Revenue from services rendered includes audience revenue and the hire of orchestra. Revenue from the rendering
of services is recognised in surplus or deficit in proportion to the stage-of-completion of the transaction at the
reporting date. Due to the services provided, the stage of completion is assessed by reference to the related
performances. Amounts received in advance for performances to be provided in future periods are recognised as a
liability until such time as the service is provided.
Rental revenue
Rental revenue from properties is accounted for on a straight-line basis over the lease terms and is included in
revenue in the statement of comprehensive revenue and expense due to its operating nature.
Dividends
Dividends are recognised when the right to receive the payment is established.
Interest income
For all financial instruments measured at amortised cost, interest income is recorded using the accrual basis method.
Effective interest rate is the rate that exactly discounts the estimated future cash payments or receipts over the
expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the
financial asset or liability. Interest income is included in finance income in the statement of comprehensive revenue
and expense.
Contra Revenue
During the year the Trust was supported by sponsors who donated goods and services in kind and is included in
revenue and expense in the statement of comprehensive revenue and expense.
Other gains and losses
Other gains and losses include realised and unrealised fair value gains and losses on financial instruments at fair
value through surplus or deficit.
b) Goods and services tax
Revenues, expenses and assets are recognised net of the amount of GST except:
• When the GST incurred on a purchase of assets or services is not recoverable from the taxation authority,
in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item, as
applicable; and
• In the case of receivables and payables, which are stated with the amount of GST included.
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