Mahitahi Hauora Annual Report 20222023 FINAL v17 - Flipbook - Page 32
Notes to the Financial Statements for the Year Ended - 30 June 2023
statements are as follows:
(a) Judgements
Recognition of Revenue and
Deferred Revenue (Conditions and
Restrictions)
(b) Assumptions and Estimation
Uncertainties
There are no signi昀椀cant
assumptions and estimation
uncertainties that could result in
a material adjustment in the year
ended 30 June 2023.
(c) Changes in Accounting Estimates
There were no material changes to
accounting estimates in the year.
4. Signi昀椀cant Accounting
Policies
The accounting policies set out below
have been applied consistently to all
periods presented in these 昀椀nancial
statements and have been applied
consistently by the Trust.
The signi昀椀cant accounting policies of
the Trust are detailed below:
(a) Revenue
Revenue is recognised when
the amount of revenue can be
measured reliably and it is probable
that economic bene昀椀ts will flow
to the Trust, and is measured at
the fair value of the consideration
received or receivable.
The following speci昀椀c recognition
criteria in relation to the Trust's
revenue streams must also be met
before revenue is recognised.
i. Revenue from exchange
transactions
Revenue from services rendered
is recognised in surplus or de昀椀cit
in proportion to the stage of
completion of the transactions
at the reporting date. The stage
of completion is assessed by
reference to the proportion of time
remaining or quantity of services
to be provided under the original
service agreement at the reporting
date.
Amounts received in advance for
services to be provided in future
periods are recognised as a liability
until such time as the service is
provided.
ii. Revenue from non-exchange
32.
transactions
Non-exchange transactions as
detailed in note 6, are those where
the Trust receives an inflow of
resources (i.e. cash and other
intangible items) but provides no
(or nominal) direct consideration in
return.
Note 6 Income from General
Practices this revenue is considered
as non-exchange, it is an agreed
amount charged to the general
practices based on their patient
numbers at a certain date to cover
only a portion of their costs.
With the exception of services
in-kind, inflows of resources from
non-exchange transactions are only
recognised as an asset where both:
- It is probable that the associated
future economic bene昀椀t or service
potential will flow to the entity, and
- Fair value is reliably measurable.
Inflows of resources from nonexchange transactions that are
recognised as assets are recognised
as non-exchange revenue, to
the extent that a liability is not
recognised in respect to the same
inflow.
Liabilities are recognised in relation
to inflows of resources from nonexchange transactions when there
is a resulting present obligation
as a result of the non-exchange
transactions, where both:
- It is probable that an outflow
of resources embodying future
economic bene昀椀t or service
potential will be required to settle
the obligation, and
- The amount of the obligation can
be reliably estimated.
(b) Interest income
Interest income is recognised as it
accrues using the effective interest
method.
(c) Employee bene昀椀ts
Short-term employee bene昀椀ts
liabilities are recognised when the
Trust has a legal or constructive
obligation to remunerate
employees for services provided
wholly within 12 months of the
reporting date, and is measured
on an undiscounted basis and
expensed in the period in which
employment services are provided.
(d) Financial Instruments
i. Recognition and initial
measurement
Trade receivables issued are
initially recognised when they are
originated. All other 昀椀nancial assets
and 昀椀nancial liabilities are initially
recognised when the Trust becomes
a party to the contractual provisions
of the instrument.
A 昀椀nancial asset or 昀椀nancial
liability is initially measured at
fair value plus transaction costs
that are directly attributable to
its acquisition or issue. At initial
recognition, an entity may measure
short-term receivables and
payables at the original invoice
amount if the effect of discounting
is immaterial.
The Trust derecognises a 昀椀nancial
asset when the contractual rights
to the cash flows from the 昀椀nancial
asset expire, or it transfers the
rights to receive the contractual
cash flows in a transaction in
which substantially all of the risks
and rewards of ownership of the
昀椀nancial asset are transferred or in
which the Trust neither transfers
nor retains substantially all of the
risks and rewards of ownership
and it does not retain control of the
昀椀nancial asset.
ii) Classi昀椀cation and subsequent
measurement
Financial assets
On initial recognition, a 昀椀nancial
asset is classi昀椀ed as measured at:
amortised cost.
Financial assets are not reclassi昀椀ed
subsequent to their initial
recognition unless the Trust
changes its management model for
managing 昀椀nancial assets, in which
case all affected 昀椀nancial assets are
reclassi昀椀ed on the 昀椀rst day of the
昀椀rst reporting period following the
change in the management model.
A 昀椀nancial asset is measured at
amortised cost if it meets both of
the following conditions:
- it is held within a management
model whose objective is to hold
assets to collect contractual cash
flows; and