meteorological service of new zealand ltd
Annual Report 2013
Financial
Statements
28
Notes to the Financial Statements
for the year ended 30 June 2013
1.
STATEMENT OF ACCOUNTING POLICIES
The financial statements presented here are for the reporting entity
of Meteorological Service of New Zealand Limited (‘Company’) and
consolidated financial statements comprising Meteorological Service
of New Zealand Limited and its subsidiaries (‘Group’).
These financial statements were authorised for issue by the Board of
Directors on 20 August 2013.
Standards adopted for the first time
Amendment to NZ IAS1 (2012), ‘Financial statement presentation’
regarding Other Comprehensive Income – effective for periods
beginning on or after 1 July 2012. The main change resulting from
these amendments is a requirement to group items in Other
Comprehensive Income on the basis of whether or not they will, or
could, be subsequently reclassified to profit or loss.
Standards that are not yet effective and have not been
early adopted by the Group
NZ IFRS 9 ‘Financial Instruments’ – effective for periods beginning
on or after 1 January 2015. The standard specifies the classification
and measurement criteria for financial assets and is designed to
replace NZ IAS 39 ‘Financial Instruments: Recognition and
Measurement’. NZ IFRS 9 reduces the classifications and
measurement methods available for financial assets from four to
two, being amortised cost or fair value through profit or loss. The
Group will adopt the standard for the year ending 30 June 2016.
The adoption of this standard is not expected to materially impact the
Group’s measurement of or disclosure of financial assets or liabilities.
NZ IFRS 10 ‘Consolidated Financial Statements’ – effective for
periods beginning on or after 1 January 2013. The standard builds on
existing principles by identifying the concept of control as the
determining factor in whether an entity should be included within the
consolidated financial statements. The standard provides additional
guidance to assist in determining control where this is difficult to
assess. The Group will adopt the standard for the year ending
30
June 2014. The adoption of this standard is not expected to
materially impact the Group’s financial statements.
NZ IAS 27 ‘Consolidated and Separate Financial Statements’ –
effective for periods beginning on or after 1 January 2013. The
standard is renamed ‘Separate Financial Statements’ and is now a
standard dealing solely with separate financial statements.
Application of this standard by the Group will not affect any of the
amounts recognised in the financial statements. The Group will
adopt the standard for the year ending 30 June 2014.
IFRS 13 Fair value measurement – effective for periods beginning on
or after 1 January 2013. Fair value measurement guidance contained
in individual IFRSs is replaced with a single, unified definition of fair
value; it also contains authoritative guidance on the application of
fair value measurement in inactive markets. There are significant
additional disclosures where fair values are used. The adoption of this
standard is not expected to materially impact the Group’s financial
statements. The Group will adopt the standard for the year ending
30
June 2014.
Statement of compliance
The financial statements have been prepared in accordance with
New Zealand generally accepted accounting practice (NZ GAAP).
They comply with New Zealand equivalents to International Financial
Reporting Standards (NZ IFRS) and International Financial Reporting
Standards (IFRS) as appropriate for profit oriented entities.
The financial statements are prepared in accordance with the
Companies Act 1993, the Financial Reporting Act 1993, and
the State Owned Enterprises Act 1986.
Meteorological Service of New Zealand Limited is incorporated and
domiciled in New Zealand. The address of its registered office is
30
Salamanca Road, Wellington. Its primary service is to provide
weather and presentation services to customers around the globe.
Summary of significant accounting policies
The principal accounting policies applied in the preparation of these
financial statements are set out below. These policies have been
consistently applied to all years presented unless otherwise stated.
Basis of preparation
The general accounting policies recognised as appropriate for
the measurement and reporting of results, cash flows and the
financial position under the historical cost convention, as modified
by the revaluation of financial assets and financial liabilities at fair
value through profit or loss, are followed in the preparation of the
financial statements.
Principles of consolidation
Subsidiaries
The consolidated financial statements are prepared from the
financial statements of the Parent and its subsidiaries as at 30 June
2013.
Subsidiaries are all entities over which the Group has control.
Control is achieved where the Parent has the power to govern the
financial and operating policies of an entity so as to obtain benefits
from its activities. The results of any subsidiary acquired or disposed
of during the year are included in the Statements of Comprehensive
Income from the effective date of acquisition or disposal. All
significant transactions between Group companies are eliminated
on consolidation. Investments in subsidiaries are recorded at cost
less impairment in the Parent company’s financial statements.
The Group uses the acquisition method of accounting to account
for business combinations. The consideration transferred for the
acquisition of a subsidiary is the fair values of the assets transferred,
the liabilities incurred and the equity interests issued by the Group.
The consideration transferred includes the fair value of any asset or
liability resulting from a contingent consideration arrangement.
Acquisition-related costs are expensed as incurred. Identifiable
assets acquired and liabilities and contingent liabilities assumed in a
business combination are measured initially at their fair values at the
acquisition date. On an acquisition-by-acquisition basis, the Group
recognises any non-controlling interest in the acquiree either at fair
value or at the non-controlling interest’s proportionate share of the
acquiree’s net assets. Investments in subsidiaries are accounted for
at cost less impairment. Cost is adjusted to reflect changes in
consideration arising from contingent consideration amendments.
Cost also includes direct attributable costs of investment.
