2023 Annual Report
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Notes to the Financial Statements<br />
For the year ended 30 June <strong>2023</strong><br />
Notes to the Financial Statements<br />
For the year ended 30 June <strong>2023</strong><br />
(i) Financial assets at amortised cost<br />
Financial assets at amortised cost are non-derivative financial assets with fixed or determinable payments that are<br />
not quoted in an active market. Such assets are carried at amortised cost using effective interest method.<br />
Financial assets include cash and cash equivalents and accounts receivable.<br />
Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term<br />
deposits with an original maturity of three months or less that are readily convertible to known amounts of cash and<br />
which are subject to an insignificant risk of changes in value.<br />
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents<br />
as defined above.<br />
Depreciation and amortisation is charged on a straight line basis over the useful life of the asset. Depreciation and<br />
amortisation is charged at rates calculated to allocate the cost or valuation of the asset less any estimated residual<br />
value over its remaining useful life:<br />
• Furniture and fittings 6.45% - 11.11%<br />
• Office equipment 10.00% - 40.00%<br />
• Office improvements 11.11% - 33.33%<br />
• Intangible assets 10.00% - 40.00%<br />
(ii) Financial liabilities at amortised cost<br />
Financial liabilities classified as at amortised cost are non-derivative financial liabilities that are not classified as<br />
fair value through surplus or deficit financial liabilities.<br />
Financial liabilities classified as amortised cost are subsequently measured at amortised cost using the effective<br />
interest method.<br />
Financial liabilities classified as amortised cost comprise trade, and other payables.<br />
(iii) Impairment of financial assets<br />
Short-term receivables are recorded at the amount due, less an allowance for expected credit losses (ECL). This<br />
allowance is calculated based on lifetime ECL. In measuring ECL, short-term receivables have been assessed on a<br />
collective basis where they possess shared credit risk characteristics. They have been trusted based on the days<br />
past due. Where a short-term receivable does not possess these similar characteristics, its ECL is individually<br />
assessed. Short-term receivables are written off when there is no reasonable expectation of recovery.<br />
Depreciation and amortisation methods, useful lives and residual values are reviewed at each reporting date and<br />
are adjusted if there is a change in the expected pattern of consumption of the future economic benefits or service<br />
potential embodied in the asset.<br />
4.6 Leases<br />
Payments on operating lease agreements, where the lessor retains substantially the risk and rewards of ownership<br />
of an asset, are recognised as an expense on a straight-line basis over the lease term.<br />
4.7 Employee benefits<br />
WAGES, SALARIES, ANNUAL LEAVE AND SICK LEAVE<br />
Liabilities for salaries and annual leave are recognised in surplus or deficit during the period in which the employee<br />
provided the related services. Liabilities for the associated benefits are measured at the amounts expected to be<br />
paid when the liabilities are settled.<br />
COMPARATIVES<br />
Where necessary, comparative information has been reclassified and repositioned for consistency with current year<br />
disclosures.<br />
4.5 Property, plant and equipment<br />
Items of property, plant and equipment are measured at cost less accumulated depreciation, amortisation and<br />
impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. Where<br />
an asset is acquired through a non-exchange transaction, its cost is measured at its fair value as at the date of<br />
acquisition.<br />
4.8 Income tax<br />
Due to its charitable status (Charities Services number CC23631), Sport Auckland is exempt from income tax.<br />
4.9 Goods and Services Tax (GST)<br />
Revenues and expenses are recognised net of the amount of GST except for receivables and payables, which are<br />
stated with the amount of GST included.<br />
The net amount of GST recoverable from, or payable to, the Inland Revenue Department is included as part of<br />
receivables or payables in the statement of financial position.<br />
4.10 Equity<br />
Equity is made up of the following components:<br />
Accumulated Comprehensive Revenue and Expense since Sport Auckland’s formation.<br />
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