Notes to the Financial Statements

1. Significant accounting policies Reporting entity

The Auckland District Law Society Incorporated (the Society) is a professional body representing the interests of its Members and the legal profession in New Zealand. The Society is constituted under the Incorporated Societies Act 1908 with an effective commencement date of 1 February 2009.

The activities of the Auckland District Law Society were incorporated into the Society on 1 February 2009. Under the requirements of the Lawyers and Conveyancers Act 2006 the activities of the Auckland District Law Society were required to be incorporated when the Council resolved not to join the New Zealand Law Society. All of the assets and liabilities of the Auckland District Law Society that were not transferred to the New Zealand Law Society were transferred to the Incorporated Society from 1 February 2009.

The Society is not required to prepare general purpose financial reporting under any legislation or founding constitution. Accordingly, in the absence of a special purpose framework for not-for-profit entities, the Society has voluntarily elected to adopt a Special Purpose Financial Reporting Framework for use by for-profit entities issued by Chartered Accountants Australia and New Zealand.

Measurement basis

The measurement base adopted is that of historical cost, with the exception that certain fixed assets are carried at valuation. Reliance is placed on the fact that the entity is a going concern. Revenue earned is matched with expenses incurred using accrual accounting concepts.

Specific accounting polices

(a) Property, plant & equipment

The Society has five classes of fixed assets:

 Land

 Buildings & alterations

 Furniture

 Equipment

 Library books

All items of property, plant and equipment are initially recorded at cost, including costs directly attributable to bringing the assets to their working condition. Freehold land and buildings are revalued to fair value at least every five years by an independent valuer. Library books are revalued to fair value at least every five years.

Revaluations are recognised in an asset revaluation reserve for that class of asset within general reserves. If any revaluation reserve has a deficit, that deficit is recognised in the statement of financial performance in the period it arises. In subsequent periods any revaluation surplus that reverses previous revaluation deficits is recognised as revenue in the statement of financial performance.

(b) Depreciation

Depreciation is provided for on a straight-line basis on all property, plant and equipment items at rates calculated to allocate the asset’s cost or valuation less estimated residual value, over the estimated useful lives. When an asset is revalued, the depreciation charge is calculated on that revalued amount from the date of revaluation.