ROWING NEW ZEALAND / ANNUAL REPORT 2020
ROWING NEW ZEALAND / ANNUAL REPORT 2020
Notes to the accounts For the year ended 31 December 2020
Notes to the accounts For the year ended 31 December 2020
Reporting Entity New Zealand Rowing Association Incorporated (“Rowing New Zealand”) is an incorporated society under the Incorporated Societies Act 1908. The financial statements of Rowing New Zealand for t he year ended 31 December 2020 comprise Rowing New Zealand, and the consolidated financial statements of the Group. “The Group” comprises of Rowing New Zealand and its controlled entity New Zealand Rowing Foundation Inc (“the Foundation”). The principal aim of Rowing New Zealand and the Group is to provide leadership that enhances performance and participation in rowing. Statement of Compliance The financial statements are prepared in accordance with generally accepted accounting practice in New Zealand (NZ GAAP). In the case of Rowing New Zealand and the Group, NZ GAAP is International Public Sector Accounting Standards as appropriate for Tier 2 Not-for-profit, Public Benefit Entities applying the Reduced Disclosure Regime (PBE St andards RDR). Rowing New Zealand and the Group have taken all disclosure concessions available. Rowing New Zealand and the Group are eligible to apply PBE Standards RDR as they have less than $30 million annual expenditure.
1 Revenue by Operating Unit
Year to 31 December 2020 Revenue Expenses
High Performance 5,858,617
Domestic & Admin 1,147,183
Foundation 37,646
Total Group 7,043,446
4,194,260
1,086,677
5,864
5,286,801
Depreciation allocation
215,594
215,162
-
430,756
Net surplus / (deficit)
1,448,763
(154,656)
31,782
1,325,889
High Performance 6,541,947
Domestic & Admin 1,691,417
Foundation 77,967
Total Group 8,311,331
Basis of preparation The accounting policies detailed in the following notes have been applied consistently to all periods presented in these financial statements and have been applied consistently by the Group.
Year to 31 December 2019 Revenue
6,455,176
1,680,975
79,657
8,215,808
T he Group controls an entity when it has the power to govern the financial and operating policies of the entity so as to benefit from its activities. Under PBE IPSAS 6 Rowing New Zealand is considered to have control over the Foundation as Rowing New Zealand receives the majority of the benefits of the Foundation and appoints the majority of the governing body.
Depreciation allocation
237,371
229,273
-
466,644
Net surplus / (deficit)
(150,600)
(218,831)
(1,690)
(371,121)
T he financial statements of Rowing New Zealand and the Group have been prepared using the going concern assumption. The measurement basis adopted is that of historical cost, other than the revaluation of foreign exchange contracts and equity and debt instruments. Covid-19 In March 2020, the World Health Organisation declared an outbreak of the coronavirus (Covid-19) pandemic resulting in the New Zealand Government declaring a State of National Emergency and governments around the world implementing varying degrees of lockdowns in an attempt to contain the outbreak. The New Zealand Government implemented lockdowns, border closures and international travel restrictions in response to the pandemic. As a result, local and international regattas, including the 2020 Tokyo Olympics, were cancelled or postponed.
Expenses
2 Revenue Recognition evenue from exchange transactions R Exchange transactions are those where the Group receives value (cash or other assets) and gives something (usually goods or services) of approximately equal value in return. The Group receives exchange revenue from a number of sources. This revenue relates largely to services provided by Rowing New Zealand. These services include international tours for selected athletes, sponsorship benefits to commercial partners, member benefits for licensed rowers and coach development programs for athletes, schools, clubs and universities.
T he cancellation of the international tours resulted in a significant decrease in high performance costs for the year as a result of no international travel. The cancellation of local regattas resulted in a significant reduction in sponsorship income and regatta delivery costs. All other domestic expenses were reduced as a result of the decreased income and activity for the year. A further significant decision made at t he 2020 AGM was to rebate 50% of competit ion license fees in 2021 to support local rowing communities financially impacted by the pandemic.
The Group recognises revenue from providing these services in proportion to the stage of completion of the transaction at the reporting date..
Significant Accounting Policies The following specific policies have been applied to all aspects of these financial statements:
Cash or other assets received from non-exchange transactions are recognised as either revenue or a liability at the reporting date. The specific recognition criteria in relation to the Group’s non-exchange transactions are:
( a) Presentation Currency The presentation currency and functional currency is the New Zealand Dollar. All amounts have been presented in New Zealand Dollars (rounded to the nearest dollar).
- Government Funding and Grants The recognition of government funding and grants depends on whether the revenue comes with any ‘conditions’ or ‘restrictions’.
( b) GST Except for trade receivables and trade payables which are stated inclusive of GST, all amounts have been reported exclusive of GST. ( c) Taxation Rowing New Zealand has an exemption from income tax under section CW46 of the Income Tax Act 2007 as a body promoting amateur games or sports. As such no income tax is payable. The Foundation has charitable status and is exempt from income tax.
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evenue from non-exchange transactions R Non-exchange transactions are those where the Group receives value (cash or other assets) without giving approximately equal value in return. The Group receives non-exchange revenue in the form of government funding, grants, philanthropic funding and donations.
If the revenue comes with ‘conditions’ that specifically require the Group to return the grant if the grant is not used in the way stipulated it is initially recognised as a liability. It is subsequently recognised as non-exchange revenue when the ‘conditions’ are satisfied. ‘Restrictions’ that do not specifically require the Group to return the cash or asset if it is not utilised in the way stipulated do not result in the recognition of a non-exchange liability. Such funding or grants are immediately recognised as nonexchange revenue. - Philanthropic Funding and Donations Philanthropic funding and donations are voluntary transfers of cash, other monetary assets, goods or services that the Group receives which are free from conditions or restrictions. Philanthropic funding and donations are recognised as revenue at their fair value at the date the funding is received.
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