Mahitahi Hauora Annual Report 20222023 FINAL v17 - Flipbook - Page 34
Notes to the Financial Statements for the Year Ended - 30 June 2023
The carrying amounts of the Trust's
non-昀椀nancial assets are reviewed
at each reporting date to determine
whether there is any indication of
impairment. If any such indication
exists, then the asset's recoverable
amount is estimated.
The recoverable amount of an
asset or cash generating unit is the
greater of its value in use and its fair
value less cost to sell. In assessing
value in use, the estimated future
cash flows are discounted to their
present value using a pre-tax
discount rate that reflects current
market assessments of the time
value of money and the risks
speci昀椀c to the asset.
An impairment loss is recognised
if the carrying amount of the asset
or its cash generating unit exceeds
its estimated recoverable amount.
Impairment losses are recognised
in surplus or de昀椀cit.
Impairment losses recognised in
previous years are assessed at each
reporting date for any indication
that the loss has decreased or no
longer exists. An impairment loss is
reversed only to the extent that the
asset's carrying amount does not
exceed the carrying amount that
would have been determined, net
of depreciation and amortisation,
if no impairment loss had been
recognised.
(g) Leases
Finance lease
Leases in terms of which the Trust
assumes substantially all the risks
and rewards of ownership are
classi昀椀ed as a 昀椀nance lease.
Upon initial recognition the lease
asset is measured at an amount
equal to the lower of its fair
value and the present value of
the minimum lease payments.
Subsequent to initial recognition,
the asset is accounted for in
accordance with the accounting
policy for property, plant and
equipment applicable to that asset.
(h) Goods and Services Tax (GST)
The 昀椀nancial statements have been
prepared on a GST exclusive basis,
with the exception of receivables
and payables which are stated
inclusive of GST.
(i) Income tax
The Trust is exempt from income
34.
tax as a result of being granted
charitable status by the Inland
Revenue Department.
5. Accounting Standards
issued
The following are new, revised or
amended standards that are applicable
to the Trust which are on issue but are
not yet required to be adopted for the
year ended 30 June 2023.
- PBE IPSAS 1 Disclosure of Fee for
Audit Firms' Services.