Raukawa Settlement Trust
Statement of Accounting Policies For the year ended 30 June 2021
1. Reporting entity The financial statements of Raukawa Settlement Trust (the Trust, RST) for the year ended 30 June 2021 comprise the Trust (the Parent), and the consolidated financial statements of the group comprising the Trust and its subsidiaries Raukawa Settlement Trust Limited, Raukawa Iwi Development Limited (RIDL), Raukawa Charitable Trust (RCT), Raukawa Asset Holding Company Limited (RAHCL).
2. Basis of preparation (a) Statement of compliance The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (“NZ GAAP”). They comply with the Public Benefit Entity Standards Reduced Disclosure Regime (“PBE Standards RDR”) as appropriate for Tier 2 not-for-profit public benefit entities, for which all reduced disclosure regime exemptions have been adopted. The Trust and Group are eligible to apply Tier 2 standards as they have less than $30 million annual expenditure and are not publicly accountable.
(b) Measurement basis The consolidated financial statements have been prepared on the historical cost basis except for investment property, land & buildings, heritage assets and other investments that have been measured at fair value.
(c) Functional and presentation currency The financial statements are presented in New Zealand dollars ($) which is the Group’s functional currency. There has been no change in the functional currency of the Group during the year. Transactions and balances reported in foreign currencies are translated to New Zealand Dollars at the rate prevailing on the date of the transaction.
(d) GST Except for trade receivables and trade payables which are stated inclusive of GST, all amounts have been reported exclusive of GST.
(e) Changes in accounting policies The accounting policies adopted are consistent with those of the previous financial year.
(f) Financial Assets/Liabilities: Nonderivative financial assets The Trust and group’s initially recognises assets held at amortised cost on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Trust and group’s becomes a party to the contractual provisions of the instrument. The Trust and group’s derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Trust and group’s is recognised as a separate asset or liability. Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Trust and group’s has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. The Trust and group’s classifies non-derivative financial assets into the following categories: financial assets at fair value through other comprehensive income and those held at amortised cost. A financial asset is classified at fair value through other comprehensive income if it is not classified as held for trading or is designated as such upon initial recognition. Financial assets are designated as at fair value through other comprehensive income if the financial asset is held with a business mode whose objective is achieved by collecting contractual cash flows and selling financial assets and the contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
