YWCA of Wellington and Hutt Valley Incorporated for the year ending 31 December 2009
Notes to the Financial Statements 1. Statement of Accounting Policies
Reporting Entity These financial statements are for the reporting entity encompassing the operations of the YWCA of Wellington and Hutt Valley (the Association). This comprises: - Administration - Programmes (e.g. Discover™, Encore etc.) - Fundraising (e.g. Suffrage Breakfast, Memberships etc.)
General Accounting Policies These financial statements have been prepared in accordance with generally accepted accounting principles recognised by the accounting profession in New Zealand. They comply with the requirements of the Financial Reporting Act 1993 and the Incorporated Societies Act 1908. - The measurement base adopted is that of historical cost. - The accrual basis of accounting has been used unless otherwise stated. - The financial statements have been prepared on a GST exclusive basis except for Accounts Payable and Receivable. - The financial statements have been
Specific Accounting Policies
Investments:
Revenue: Grants are recorded as a liability and
Investments are recorded at the lower of historical cost or market valuation.
recognised as revenue when the expenditure is incurred. Fees received in advance of a course are recorded as a current liability and recognised as revenue when the course is held. Interest and rental income is recognised when earned. All other income is recognised when received.
Expenses: Depreciation is provided at rates calculated to allocate the cost of an asset, less any estimated residual value, over its estimated useful life. All assets except the land and buildings are depreciated. Computer and Photocopying equipment are depreciated over 3 years Straight Line. All other equipment is depreciated over 5 years Straight Line. All other expenses are recognised when they are incurred.
Taxation: The Association is a charitable organisation and is exempt from income tax but is a GST registered organisation.
prepared on a going concern basis. Accounts Receivable: Debtors are recorded at the amount expected to be received in cash. This value is after writing off non recoverable amounts.
Fixed Assets: Land and buildings are recorded at historical cost. All other fixed assets are recorded at cost less accumulated depreciation.
Differential Reporting: The Association qualifies for differential reporting exemption under the Framework for Differential Reporting issued by the Institute of Chartered Accountants of New Zealand, as it is not publicly accountable and is not classified as large. Accordingly the Association has taken advantage of all differential reporting exemptions.
Statement of Changes in Accounting Policies: Due to the situation with two of the debentures held by the YWCA (see note 6) the accounts now show investments at the lower of historical cost or market valuation. Prior to 2008 all investments were shown at historical cost only.
All other accounting policies adopted are consistent with those of the previous year.
No provision is made for doubtful debtors.
l
Pg 19