Annual Report 2011 - Watercare

Watercare Services Limited
2011 ANNUAL REPORT
STATEMENT OF ACCOUNTING POLICIES (continued)
FOR THE YEAR ENDED 30 JUNE 2011
21. Comparatives
Certain comparatives have been restated to ensure consistency with current year presentation as below:
• 2010 comparatives in the statement of cash flows and in note 7, page 83 on operating cash flows have been restated to exclude GST to be
consistent with the group’s parent Auckland Council.
• Financial and developer contributions are not separately disclosed in the statement of comprehensive income and are instead included within
total revenue and disclosed in note 1, page 81.
• Items in other comprehensive income and items in revaluation reserve in note 12, page 88 are disclosed net of deferred tax and the related
deferred tax is disclosed in note 9, page 85.
• In the statement of financial position by business unit the split showing the categories within property, plant and equipment for comparatives
is removed to be consistent with the categories presented in the group statement of financial position.
22. Accounting Standards and Interpretation
The group’s policy is to adopt accounting standards before they become mandatory. However, the following new accounting standard has been
reviewed by the group for early adoption and has not been adopted for the current financial year:
• NZ IFRS 9, Financial Instruments (effective for reporting periods beginning on or after 1 January 2013) – as NZ IFRS 9 is expected to be subject
to significant amendments in future years the group has delayed adoption of this standard until the impact of future amendments is known.
The impact of NZ IFRS 9 in its current state would require the group to make changes in accounting policies and disclosures relating to the
groups assets or liabilities.
The financial statements comply with the following new accounting standards or updated standards. The impact on the financial statements
is detailed below:
• FRS 44 relocates New Zealand specific disclosures from other standards to one place and revises several disclosures and Harmonisation
Amendments list the amendments made to NZ IFRS to harmonise with IFRS and Australian Accounting Standards effective for accounting
periods beginning on or after 1 July 2011 with early application permitted. As a result of early adoption, the group has elected to reduce its
disclosure where appropriate.
Application of the following new standards and interpretations will not have any impact on the financial statements of the group because they
are not relevant to the group’s current activities or are not required.
• Amendments to NZ IFRIC 14 – This interpretation is not relevant to the group as it does not offer any defined benefit superannuation plans.
The group’s employees participate in the KiwiSaver scheme which is a defined contribution plan.
• Amendment to NZ IAS 26 Accounting and reporting by retirement benefit plans – This amendment is not relevant to the group as it does not
constitute a retirement benefit plan.
• Amendment to NZ IAS 12 Income Tax – Deferred tax: Recovery of underlying assets – This amendment is not relevant to the group as it does
not own any investment properties.
• Annual improvements to NZ IFRS 2010 – The annual improvements made by the IASB for 2010 to various standards have been incorporated
in reporting disclosures. There was no measurement impact.
• Amendments to NZ IFRS 7 – Financial instruments disclosures – This amendment is not relevant to the group as there have not been any
transfers of financial assets in the current year.
• Amendments to NZ IFRS 27 – Separate financial statements – not applicable to public benefit entities.
• Amendments to NZ IAS 28 – Investments in associates and joint ventures – not applicable to public benefit entities.
• Amendments to NZ IFRS 8 – Operating segments – there is no disclosure or measurement impact.
• Amendments to NZ IFRS 10 – Consolidated financial statements – not applicable to public benefit entities.
• Amendments to NZ IFRS 11 – Joint arrangements – not applicable to public benefit entities.
• Amendments to NZ IFRS 12 – Disclosure of interests in other entities – not applicable to public benefit entities.
• Amendments to NZ IFRS 13 – Fair value measurement – not applicable to public benefit entities.
• Amendments to NZ IFRS 1 – First time adoption of NZ IFRS – not applicable as the group is not first time adopter.
• Amendments to NZ IAS 1 – Presentation of items of other comprehensive income (amendments to NZ IAS 1) – not applicable to public
benefit entities.
• Amendments to NZ IAS 19 – Employee benefits – not applicable to public benefit entities.
2011 Financial Report
Changes in Accounting Policies
The group will adopt the public benefit entity exemption under NZ IAS 16 and not disclose property, plant and equipment on a historical cost
basis in these financial statements. There are no other changes to accounting policies.
PAGE 80
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