Annual Report 2009 (PDF 2 MB) - Wellington Institute of Technology

Wellington Institute of TechnologySummary of Accounting PoliciesREPORTING ENTITYThe financial statements of Wellington Institute of Technology for the year ended 31 December 2009 were authorisedfor issue in accordance with a resolution of the councillors on 7 April 2010.FINANCIAL STATEMENTSWellington Institute of Technology is a Crown Entity and is established under the Education Act 1989 as a publictertiary institution. It provides full-time and part-time tertiary education in New Zealand.STATEMENT OF COMPLIANCEThe financial statements comply with New Zealand Generally Accepted Accounting Practice (NZ GAAP), whichincludes New Zealand equivalents to International Financial Reporting Standards (‘NZ IFRS’).BASIS OF PREPARATIONThe financial statements have been prepared in accordance with generally accepted accounting practice in NewZealand, and the requirements of the Crown Entities Act 2004 and the Education Act 1989. Wellington Institute ofTechnology is a public benefit entity for the purpose of complying with generally accepted accounting practice inNew Zealand.The financial statements have been prepared on a historical cost basis, except for land, buildings and equipment,which have been measured at fair value.The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousanddollars ($’000), except where indicated. Nil values are reflected as a ‘-‘within these financial statements.SIGNIFICANT ACCOUNTING POLICIESThe following significant accounting policies have been adopted in the preparation and presentation of the financialreport:Budget FiguresThe budget figures are those approved by the Council at the beginning of the financial year. The budget figures havebeen prepared in accordance with NZ GAAP and are consistent with the accounting policies adopted by the Councilfor the preparation of the financial statements.Cost of ServicesWellington Institute of Technology has presented an analysis of its cost of services on the face of the income statementutilising a classification based on the expenditure’s function. Detailed analysis of expenditure based on the underlyingnature of the expenses has been provided within the notes to the accounts.Wellington Institute of Technology has five functional divisions:- Education Outcomes – representing all activities associated with the delivery of education and training whichhas been generated via the enrolling of students.- Self-Supporting - representing specific deliverables funded by the Crown or 3rd parties which are an aside tothe Educational Outcomes delivered by the organisation.- Transformation – representing all activities associated with the delivery of specific outcomes required by theCrown. These include the delivery of SBC efficiencies, QRP deliverables and Business Links outcomes.- Significant assets - reflecting the impact our asset management and replacement framework has on theorganisations financial performance.- Financing - reflecting the impact cash management activities have on the organisations financial performance.28WELLINGTON INSTITUTE OF TECHNOLOGY | 2009 ANNUAL REPORT