Statement of Accounting Policies

NEW ZEALAND BUSINESS & PARLIAMENT TRUST

STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2019

BASIS OF PREPARATION

The Trust has elected to apply PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting - Accrual (Not-For-Profit) on the basis that it does not have public accountability and has total annual expenses of equal to or less than $2,000,000 for the last two annual reporting periods.

All transactions in the Performance Report are reported using the accrual basis of accounting. The Performance Report is prepared under the assumption that the Trust will continue to operate as a going concern in the foreseeable future. The performance report is presented in New Zealand Dollars. All numbers presented have been rounded to the nearest dollar unless otherwise stated.

REVENUE

Revenue is accounted for as follows:

Membership income

Fees and subscriptions received in exchange for monthly access to member’s facilities are initially recorded as income in advance and recognised in revenue evenly over the membership period.

Interest and dividend income

Interest income is recognised on an accruals basis.

INCOME TAX

The Trust is a registered charity under the Charities Act 2005, and accordingly is not subject to income tax.

BANK ACCOUNTS AND CASH

Bank and cash in the Statement of Cash Flows comprise cash balances and bank balances (including short term deposits) with original maturities of 90 days or less.

DEPOSITS

Deposits comprise term deposits which have a term of greater than three months and therefore do not fall into the category of cash and cash equivalents.

INVESTMENTS

Investments are recorded at cost.

GOODS AND SERVICES TAX (GST) PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are shown at cost or valuation less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is provided on a straight-line basis on all property, plant and equipment, at rates that will write off the cost of the assets to their estimated residual values over their useful lives. The depreciation rates and useful lives associated with major classes of assets have been estimated as follows:

Office equipment : 5 years

Intangible Assets

The Trust has elected to adopt the Tier 2 standard PBE IPSAS 31 Intangible Assets in relation to the capitalisation of the costs incurred in the development of the website. Intangible assets acquired by the Trust, which finite useful lives, are measured at cost less accumulated amortisation and any impairment losses. Acquired website development costs are capitalised on the basis of the costs incurred to acquire and develop the website.

Amortisation

Intangible assets are amortised on a straight-line basis over the estimated useful life of the asset, from the date they are available for use and reported within the surplus or deficit for the year. The following amortisation rates have been applied:

Website : 20% SL

EMPLOYEE COSTS

Employee entitlements are measured at undiscounted nominal values based on accrued entitlements at current rates of pay.

These include salaries and wages accrued up to balance date, and annual leave earned but not taken at balance date.

The Trust recognises a liability and an expense for bonuses it is contractually obliged to pay, or where a past event has created a constructive obligation.

CHANGES IN ACCOUNTING POLICIES

There have been no changes in accounting policies during the annual reporting period (2018: None).