Notes to the financial statements |

For the year ended 31 December 2022

20. Contingencies

Contingent liabilities

Litigation

Te Wānanga o Aotearoa has two legal claims outstanding as at the balance date (2021: Four). The claims relate to disputes with internal parties. Te Wānanga o Aotearoa has not disclosed the details of these claims as it may seriously prejudice the position of Te Wānanga o Aotearoa with respect to disputes with the other internal parties.

Financial guarantee

Te Wānanga o Aotearoa has no financial guarantees in place as at balance date (2021: nil).

Contingent assets

Te Wānanga o Aotearoa has no contingent assets as at balance date (2021: nil).

21. Capital commitments and operating leases

Accounting policy

Operating leases

Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as the lease revenue.

Operating lease payments are recognised as an expense in the surplus/(deficit) on a straight-line basis over the lease term.

Lease incentives received are recognised in the surplus/(deficit) as a reduction of rental expense over the lease term.

Capital commitments

Capital commitments represent capital expenditure contracted for at balance date, but not recognised in the financial statements are as follows;