Notes to the financial statements |

For the year ended 31 December 2022

2. Summary of significant accounting policies

(continued)

PBE FRS 48 Service Performance Reporting

This Standard establishes new requirements for the selection and presentation of service performance information. Te Wānanga o Aotearoa has adopted PBE FRS 48 and the main changes between PBE IFRS 48 and PBE IPSAS 1 Presentation of Financial Statements is:

› Additional information disclosed on the judgements that have the most significant effect on the selection, measurement, aggregation, and presentation of service performance information.

Standards, amendments, and interpretations issued that are not yet effective and have not been early adopted

Standards, amendments, and interpretations issued but not yet effective that have not been early adopted, and which are relevant to Te Wānanga o Aotearoa, are:

2022 Omnibus Amendment to PBE Standards

This Standard has been issued to amend the relevant Tier 1 and Tier 2 PBE Standards as a result of:

2 Summary of significant accounting policies (continued)

› PBE IPSAS 16 Investment Property: The amendments clarify that fair value measurement of self-constructed investment property could commence before the completion of construction.

› PBE IPSAS 30 Financial Instruments: Disclosures: The amendment specifically refers to disclosing the circumstances that result in fair value not being determinable

› PBE IPSAS 19 Provisions, Contingent Liabilities and Contingent Assets: The amendments clarify the costs of fulfilling a contract that an entity includes when assessing whether a contract will be loss-making or onerous (and therefore whether a provision needs to be recognised).

Te Wānanga o Aotearoa has not yet assessed in detail the impact of these amendments.

2.2 Goods and Services Tax (GST)

All items in the financial statements are stated exclusive of GST, except for receivables and payables, which are presented on a GST inclusive basis.

Where GST is not recoverable as input tax, it is recognised as part of the related asset or expense.

The net amount of GST recoverable from or payable to the Inland Revenue (IRD) is included as part of receivables or payables in the statement of financial position.

The net GST paid to or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows.

Commitments and contingencies are disclosed exclusive of GST.

2.3 Cost allocation

The cost of service for each significant activity of Te Wānanga o Aotearoa has been derived using the cost allocation outlined below. Direct costs are those costs directly attributable to a significant activity. Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific activity. Direct costs are charged directly to the significant activity. Indirect costs are charged to significant activities using the appropriate cost drivers.

2.4 Key judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

The following items have been included in the financial statements as a result of key judgements or estimates: