2023 Annual Report

Notes to the Financial Statements
For the year ended 30 June 2023
Notes to the Financial Statements
For the year ended 30 June 2023
1. Reporting entity
The reporting entity is Sport Auckland (previous legal name, Auckland Central Sports Trust). Sport Auckland is a
Charitable Trust incorporated under the Charitable Trusts Act 1957 and a registered Charity under the Charities Act
2005.
These financial statements and the accompanying notes summarise the financial results of activities carried out by
Sport Auckland.
These financial report have been approved and were authorised for issue by the Board of Trustees on the date
indicated on page 42.
2. Statement of compliance
The financial report have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand
(“NZ GAAP”). They comply with Public Benefit Entity International Public Sector Accounting Standards (“PBE IPSAS”)
and other applicable financial reporting standards as appropriate that have been authorised for use by the External
Reporting Board for Not-For-Profit entities. For the purposes of complying with NZ GAAP, Sport Auckland is a public
benefit not-for-profit entity and is eligible to apply Tier 2 Not-For-Profit PBE IPSAS on the basis that it does not have
public accountability and it is not defined as large.
The Board of Trustees has elected to report in accordance with Tier 2 Not-For-Profit PBE Accounting Standards and
in doing so has taken advantage of all applicable Reduced Disclosure Regime (“RDR”) disclosure concessions.
3. Changes in accounting policies
Changes due to the initial application of a revised and amended PBE standards are noted below:
i. Adoption of PBE IPSAS 41 Financial Instruments
Sport Auckland has adopted PBE IPSAS 41 Financial Instruments in the current financial year.
This standard replaces the provisions of PBE IPSAS 29 Financial Instruments: Recognition and Measurement that
relate to the recognition, classification and measurement of financial assets and financial liabilities; derecognition
of financial instruments; impairment of financial assets and hedge accounting.
In accordance with the transitional provisions in PBE IPSAS 41 comparative information for the 30 June 2022
period have not been restated. As a result, the comparative information provided continues to be accounted for in
accordance with the Sport Auckland’s previous accounting policies.
There were no material changes in recognition or measurement required upon adoption of PBE IPSAS 41.
4. Summary of accounting policies
The significant accounting policies used in the preparation of these financial statements as set out below have been
applied in these financial statements.
4.1 Basis of measurement
The financial statements have been prepared on the basis of historical cost.
4.2 Functional and presentational currency
The financial statements are presented in New Zealand dollars ($), which is Sport Auckland’s functional currency.
Amounts are rounded to the nearest dollar.
4.3 Revenue
Revenue is recognised to the extent that it is probable that the economic benefit or some potential benefit
will flow to Sport Auckland and revenue can be reliably measured. Revenue is measured at the fair value of
the consideration received or receivable, taking into account contractually defined terms of payment and
excluding goods and services taxes or duties. The following specific recognition criteria must be met before
revenue is recognised.
REVENUE FROM NON-EXCHANGE TRANSACTIONS
• Aktive funding is received in instalments and is recognised as revenue to the extent the use or return conditions
have been met.
• Grant revenue includes grants given by trusts, central and local government organisations and is recognised
in the Statement of Comprehensive Revenue and Expense when the conditions attached to the grant have
been complied with. Where there are unfulfilled conditions attached to the grant, the amount relating to the
unfulfilled condition is recognised as a liability and released to the Statement of Comprehensive Revenue and
Expense as revenue when the conditions are fulfilled. If there are no conditions attached to the grant, revenue
is recognised at the time the funds are received.
REVENUE FROM EXCHANGE TRANSACTIONS
• Interest is recognised as it accrues using the effective interest method. The 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.
ii.
PBE FRS 48 Service Performance Reporting
• Sports House Recoveries are recognised in the period to which they relate.
PBE FRS 48 Service Performance Reporting is effective for the period from 1 July 2022 and was adopted by Sport
Auckland on that date.
PBE FRS 48 require specific disclosure for the reporting of service performance information which have been
provided in the statement of service performance.
4.4 Financial instruments
Financial assets and financial liabilities are recognised when the Trust becomes a party to the contractual provisions
of the financial instrument.
48 Annual report
Annual report
49