Forecast Statement of Cash Flows Notes to the forecast financial statements

1 General Overview a Reporting Entity b Basis of Preparation

Predator Free 2050 Limited (the 'Company') is a company incorporated in New Zealand, registered under the Companies Act 1993, and is domiciled in New Zealand.

The purpose of the company and it's principal activity is to eradicate possums, rats and stoats from New Zealand by 2050.

The forecast financial statements of the Company are for the year ended 30 June 2021.

(i) Statement of Compliance

The forecast financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP). They comply with the Public Benefit Entity International Public Sector Accounting Standards (PBE IPSAS) and other applicable Financial Reporting Standards.

The forecast financial statements have been prepared in accordance with PBE Standards Reduced Disclosure Regime (PBE RDR) and disclosure concessions have been applied. The criteria under which an entity is eligible to report in accordance with PBE Standards RDR is due to the Company not being publicly accountable or large, as defined by the External Reporting Board (XRB) Standard A1: Application of Accounting Standards.

The forecast financial statements of the Company have been prepared in accordance with the relevant requirements of the Public Finance Act 1989 and the Crown Entities Act 2004, which includes the requirement to comply with NZ GAAP.

The forecast financial statements are presented in New Zealand Dollars ($), which is the Company’s functional currency. All financial information presented in New Zealand Dollars has been rounded to the nearest dollar, except when otherwise indicated.

The Company is exempt from income tax under section CW 42(1) (a) of the Income Tax Act 2007. The Company has been granted tax exempt status and is registered as a charity under the Charities Act 2005.

(ii) Going Concern c Use of estimates and judgements

The forecast financial statements have been prepared on a going concern and a historical cost basis. The Directors believe the use of the going concern assumption is appropriate, as the Department of Conservation has agreed to provide a current baseline funding of $5.914M PA to the Company.

In addition to the current baseline funding, new funding arrangements announced in the Budget 2020 consisting of $76M over the next four years. The timing of drawdowns from the Crown are primarily governed by cash flow needs, which may result in a reported deficit at any one point in time.

In preparing these forecast financial statements, Predator Free 2050 Limited has made estimates and assumptions concerning the future. Estimates and assumptions are continually evaluated and are based on historic experience and expectations of future events that are believed to be reasonable under the circumstances.

This statement is to be read in conjunction with the notes to the financial statements.