Mahitahi Hauora Annual Report 20222023 FINAL v17 - Flipbook - Page 31
30 June 2023 - Notes to the Financial Statements for the Year Ended
Notes to
the Financial
Statements
For the Year Ended 30 June 2023
1. Reporting Entity
The reporting entity Te Kaupapa
Mahitahi Hauora-Papa O Te Raki ("the
Trust"), is a Trust domiciled in New
Zealand and is a charitable organisation
registered under the Charities Act 2005.
The Trust is a public bene昀椀t entity for
the purposes of 昀椀nancial reporting in
accordance with the Financial Reporting
Act 2013.
The Trust provides primary health
services to Northland under a PHO
service agreement with Te Whatu Ora/
Health NZ.
The 昀椀nancial statements have been
approved and were authorised for issue
by the Board of Trustees on 20 October
2023.
2. Basis of Preparation
(a) Statement of Compliance
The 昀椀nancial statements have
been prepared in accordance with
New Zealand Generally Accepted
Accounting Practice (NZ GAAP).
They comply with the Public Bene昀椀t
Entity Accounting Standards (PBE
standards) and other applicable
Financial Reporting Standards, as
appropriate for Tier 1 not-for-pro昀椀t
public bene昀椀t entities.
The Trust is a Tier 1 entity as it has
more than $30m of total expenses.
(b) Basis of Measurement
The 昀椀nancial statements have been
prepared on a historical cost basis.
(c) Functional and Presentation
Currency
The 昀椀nancial statements are
presented in New Zealand dollars
($) which is the Trust’s functional
and presentation currency, rounded
to the nearest dollar.
(d) Changes in Accounting Policies
The following new accounting
standards were adopted by the
Trust during the year. There were
no other changes to the Trust's
accounting policies.
PBE IPSAS 41 Financial
Instruments
PBE IPSAS 41 Financial
Instruments was effective from 1
January 2022 and was adopted
by the Trust on 1 July 2022.
PBE IPSAS 41 introduces new
recognition and measurement
requirements for 昀椀nancial assets
and restricts the ability to measure
昀椀nancial assets at amortised cost
to only those assets that are held
within a management model whose
objective is to hold 昀椀nancial assets
in order to collect contractual
cash flows and the contractual
terms of the 昀椀nancial asset give
rise on speci昀椀ed dates to cash
flows that are solely payments
of principal and interest on the
principal amount outstanding. In
addition, measurement of 昀椀nancial
assets at fair value through other
comprehensive revenue and
expense is also restricted
PBE 1PSAS 41 has not had a
material impact on the Trust's
measurement and recognition of
昀椀nancial instruments because all
its 昀椀nancial assets meet the new
de昀椀nition of 昀椀nancial assets as
amortised cost.
The new expected credit loss
impairment model has been
introduced; however, due to the
nature of the Trust's receivables
it has not materially changed the
Trust's impairment provisioning.
PBE FRS 48 Service Performance
Reporting
PBE FRS 48 Service Performance
Reporting was effective for periods
from 1 January 2022 and was
adopted by the Trust on 1 July
2022.
PBE FRS 48 requires speci昀椀c
disclosures for the reporting of
service performance information
which have been provided in the
statement of service performance.
3. Use of Judgements and
Estimates
The preparation of the 昀椀nancial
statements requires management
to make judgements, estimates and
assumptions that affect the application
of accounting policies and the reported
amounts of assets, liabilities, income
and expenses. Actual results may differ
from those estimates.
Signi昀椀cant areas of estimation,
uncertainty and critical judgement
in applying accounting policies that
have the most signi昀椀cant effect on the
amounts recognised in the 昀椀nancial
31.