Hoea ra - NgÄti Kahungunu Iwi Incorporated
Hoea ra - NgÄti Kahungunu Iwi Incorporated
Hoea ra - NgÄti Kahungunu Iwi Incorporated
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Notes to and Forming Part of theFinancial StatementsFOR THE YEAR ENDED 30 JUNE 20101 STATEMENT OF ACCOUNTING POLICIESReporting EntityNgäti <strong>Kahungunu</strong> <strong>Iwi</strong> Incorpo<strong>ra</strong>ted (the society) is an incorpo<strong>ra</strong>ted societyestablished under the Incorpo<strong>ra</strong>ted Societies Act 1908 and is a registered charityunder the Charities Act 2005.Ngäti <strong>Kahungunu</strong> <strong>Iwi</strong> Incorpo<strong>ra</strong>ted has seve<strong>ra</strong>l subsidiary entities.The reporting entity comprises the society and consolidated group of the societyand its subsidiaries. The financial statements are prepared under gene<strong>ra</strong>llyaccepted accounting principles.Measurement BaseThe accounting principles recognised as appropriate for the measurement andreporting of earnings and financial position on an historical cost basis are followedwith the exceptions as noted below.Differential ReportingThe society qualifies for differential reporting as it is not publicly accountable,and not large in size. The society has taken advantage of all available differentialreporting exemptions except for FRS 19 GST.Specific Accounting PoliciesThe following specific accounting policies which materially affect the measurementof financial performance and financial position have been applied.(a) ConsolidationThe purchase method of consolidation has been applied in preparingthe consolidated financial statements. All inter entity t<strong>ra</strong>nsactions andbalances have been eliminated on consolidation.(b) Ope<strong>ra</strong>ting RevenueThis represents revenue earned from the sale of the society’s productsand services, investment income on the society’s investments, andincome earned on cont<strong>ra</strong>ct for services net of any credit allowed. Projectrelated income is recorded on an accruals basis, consistent with thedegree of project completion.(c) DepreciationDepreciation has been calculated using <strong>ra</strong>tes permitted by the IncomeTax Act 2004.Vehicles20-32% DVComputer Equipment & Plant 10-60% DV(d) Income TaxThe society is registered as a charitable entity under the Charities Act2005 so qualifies for an income tax exemption under the Income Tax Act2007.(e) Fixed AssetsFixed assets are stated at cost less accumulated depreciation.Page 19
Change language