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50 Leases Operating leases Leases that do not transfer substantially all the risks and rewards incidental to ownership of an asset to the Health and Disability Commissioner are classifi ed as operating leases. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the term of the lease in the statement of fi nancial performance. Lease incentives received are recognised in the statement of fi nancial performance over the lease term as an integral part of the total lease expense. Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks both domestic and international, other short-term, highly liquid investments, with original maturities of three months or less, and bank overdrafts. Debtors and other receivables Debtors and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Investments At each balance sheet date the Health and Disability Commissioner assesses whether there is any objective evidence that an investment is impaired. Bank deposits Investments in bank deposits are initially measured at fair value plus transaction costs. After initial recognition, investments in bank deposits are measured at amortised cost using the effective interest method. For bank deposits, impairment is established when there is objective evidence that the Health and Disability Commissioner will not be able to collect amounts due according to the original terms of the deposit. Signifi cant fi nancial diffi culties of the bank, probability that the bank will enter into bankruptcy, and default in payments are considered indicators that the deposit is impaired. Inventories Inventories (such as publications) held for distribution or consumption in the provision of services that are not supplied on a commercial basis are measured at cost (using the FIFO method), adjusted, when applicable, for any loss of service potential. The loss of service potential of inventory held for distribution is determined on the basis of obsolescence. Where inventories are acquired at no cost or for nominal consideration, the cost is the current replacement cost at the date of acquisition. Inventories held for use in the provision of goods and services on a commercial basis are valued at the lower of cost (using the FIFO method) and net realisable value. The amount of any write-down for the loss of service potential or from cost to net realisable value is recognised in surplus or defi cit in the period of the write-down. Property, plant and equipment Property, plant and equipment asset classes consist of leasehold improvements, furniture and fi ttings, offi ce equipment, computer hardware, communication equipment and motor vehicles. Property, plant and equipment are shown at cost or valuation, less any accumulated depreciation and impairment losses. Additions The cost of an item of property, plant and equipment is recognised as an asset only when it is probable that future economic benefi ts or service potential associated with the item will fl ow to the Health and
Disability Commissioner and the cost of the item can be measured reliably. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value when control over the asset is obtained. Disposals Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the statement of comprehensive income. Subsequent costs Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefi ts or service potential associated with the item will fl ow to the Health and Disability Commissioner and the cost of the item can be measured reliably. The costs of day-to-day servicing of property, plant and equipment are recognised in the statement of fi nancial performance as they are incurred. Depreciation Depreciation is provided on a straight-line basis on all property, plant and equipment at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows: Leasehold improvements 3 years (33%) Furniture and fi ttings 5 years (20%) Offi ce equipment 5 years (20%) Motor vehicles 5 years (20%) Computer hardware 4 years (25%) Communication equipment 4 years (25%) Leasehold improvements are depreciated over the unexpired period of the lease or the estimated remaining useful lives of the improvements, whichever is the shorter. The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each fi nancial year end. Intangible assets Software acquisition and development Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specifi c software. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs associated with the development and maintenance of the Health and Disability Commissioner’s website are recognised as an expense when incurred. Amortisation The carrying value of an intangible asset with a fi nite life is amortised on a straightline basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in the statement of fi nancial performance. The useful lives and associated amortisation rates of major classes of intangible assets have been estimated as follows: Acquired computer software 2 years 50% HDC ANNUAL REPORT 2012 51
Page 1 and 2: ANNUAL REPORT for the year ended 30
Page 3 and 4: 1. Commissioner’s Foreword ......
Page 5 and 6: 1.0 Commissioner’s Foreword The m
Page 7 and 8: 1.1 2011/12 Priorities In line with
Page 9 and 10: 2.0 Role of the Health and Disabili
Page 11 and 12: 2.2 Impact and outcomes HDC and the
Page 13 and 14: Deputy Commissioner, Complaints Res
Page 15 and 16: CASE STUDY: Lack of consistent appr
Page 17 and 18: Nature of complaints The HDC receiv
Page 19 and 20: DHB reports Section 38 The HDC cont
Page 21 and 22: CASE STUDY: Dental care - is this t
Page 23 and 24: Source of complaints Of those who c
Page 25 and 26: Having a national focus each year o
Page 27 and 28: CASE STUDY: Achieving compensation
Page 29 and 30: Statistics The Director of Proceedi
Page 31 and 32: Education for providers and the wid
Page 33 and 34: Disability related complaints recei
Page 35 and 36: 5.0 Organisational Performance, Dev
Page 37 and 38: 5.6 Processes and technology Sustai
Page 39 and 40: 6.2 Output Class 2: Advocacy Perfor
Page 41 and 42: 6.4 Output Class 4: Education Perfo
Page 43 and 44: 7.0 Statement of Responsibility In
Page 45 and 46: HDC ANNUAL REPORT 2012 An audit inv
Page 47 and 48: STATEMENT OF FINANCIAL POSITION as
Page 49 and 50: STATEMENT OF CASH FLOWS for the yea
Page 51: Standards, amendments, and interpre
Page 55 and 56: Goods and Service Tax (GST) All ite
Page 57 and 58: 3. Other income 4. Personnel costs
Page 59 and 60: 7. Debtors and other receivables 8.
Page 61 and 62: In the year ended 30 June 2012, HDC
Page 63 and 64: 13. Non current liability Lease inc
Page 65 and 66: 16. Commitments and operating lease
Page 67 and 68: 19. Employee remuneration Total rem
Page 69 and 70: Credit risk Credit risk is the risk
Page 71 and 72: Transparency Engagement Consumer Ce

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