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