Notes to the financial statements |

For the year ended 31 December 2022

1. Statement of accounting policies for the year ended 31 December 2022

1.1 Reporting entity

Te Wānanga o Aotearoa is a Tertiary Education Institution domiciled in New Zealand and is governed by the Crown Entities Act 2004 and the Education and Training Act 2020.

The primary purpose of Te Wānanga o Aotearoa is to provide tertiary education and it has designated itself as a public sector public benefit entity for the purposes of financial reporting.

The group consisted of the ultimate parent, Te Wānanga o Aotearoa, and its subsidiary Aotearoa Scholarship Trust (100% controlled) up to 30 November 2021. As from 30 November 2021 Aotearoa Scholarship Trust was dissolved and assets were transferred to Te Wānanga o Aotearoa.

Aotearoa Scholarship Trust 2021 income was $2,457 and expenses were $21,047.

The financial statements cover all of the activities pertaining to an educational and research institution including but not limited to:

› The provision of student services and the facilitating of student activities, including scholarships;

› The activities of a researcher, developer, publisher, property owner, occupier including tenant or landlord, trustee, provider of accommodation, early childhood services, conferences, exhibitions, recreation facilities, sponsorship and hireage; and

› Any other activity or occupation incidental to an educational and research institution.

The financial statements of Te Wānanga o Aotearoa are for the year ended 31 December 2022. The financial statements were authorised for issue on 27 April 2023 by Te Mana Whakahaere.

2. Summary of significant accounting policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below.

These policies have been consistently applied to the opening statements of financial position and reporting period to 31 December 2022, unless otherwise stated.

2.1 Basis of preparation

The financial statements have been prepared on the going concern basis, and the accounting policies have been applied consistently throughout the period.

Statement of compliance

The financial statements and service performance information comply with Public Benefit Entity International Public Sector Accounting Standards ("PBE IPSAS") for Tier 1 entities.

The financial statements of Te Wānanga o Aotearoa have been prepared in accordance with the requirements of the Crown Entities Act 2004 and the Education and Training Act 2020, which includes the requirement to comply with New Zealand Generally Accepted Accounting Practice ("NZ GAAP"). They comply with PBE IPSAS and other applicable Financial Reporting Standards, as appropriate for Tier 1 public sector public benefit entities..

Measurement base

The financial statements have been prepared on a historical cost basis except where modified by the revaluation of artwork, land and buildings.

Functional and presentation currency

The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($'000).

The functional currency of Te Wānanga o Aotearoa and its subsidiaries is New Zealand dollars.

There has been no change in the functional currency of Te Wānanga o Aotearoa during the year.

There have been no changes to the cost allocation methodology since the date of the last audited financial statements.

New amendment applied

PBE IPSAS 41 Financial Instruments

PBE IPSAS 41 Financial Instruments supersedes PBE IFRS 9 and PBE IPSAS 29 Financial Instruments: Recognition and Measurement. It is effective for the year ending 31 December 2022, with early adoption permitted.

The main changes between PBE IPSAS 29 and PBE IPSAS 41 are:

› new financial asset classification requirements for determining whether an asset is measured at fair value or amortised cost; and

› a new impairment model for financial assets based on expected credit losses, which may result in earlier recognition of impairment losses.