The accounting policies adopted are consistent with those of the previous financial year except the following:
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NZ IAS 1 The amendments to NZ IAS 1 require an entity to present an analysis of other comprehensive income for each component of equity, either in the Statement of Changes in Equity or in the notes to the financial statements.
1 July 2011 No impact. HAA continues to present the components of Other Comprehensive Income in the Statement of Changes in Equity.
NZ IAS 24 Related Party Disclosures (Revised 2009) The revised NZ IAS 24 simplifies the definition of a related party, clarifying its intended meaning and eliminating inconsistencies from the definition.
Some disclosure requirements have been amended to include commitments with related parties and to reduce disclosures for PBE’s in respect to
transactions with the Ministers of the Crown and for government related entities.
1 July 2011 No impact.
NZ IAS 40 Amendments to NZ IAS 40 Investment Property The amendments introduce the cost model for measuring investment property, permitting an entity to choose either the fair value or cost model.
Additional disclosures are introduced relating to entities applying the cost model.
The amendments further remove the requirement that all valuations shall be conducted either:
(a) by an independent valuer; or
(b) by a person sufficiently experienced to conduct a valuation, so long as the valuation has been subject to review by an independent valuer.
and remove the requirements to disclose detailed information about the independent valuer engaged.
1 July 2011 HAA measures its investment property using the fair value model. Thus the disclosure requirements for entities applying the cost model are not applicable to HAA.
Note 6 of the financial statements of HAA provides disclosure of the name of the valuer employed, the total fair value of property valued by that valuer and the date(s) of such valuations. Detailed information about the independent valuer is no longer required.
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Harmonisation Amendments
Amendments to NZ IFRS to Harmonise with IFRS and Australian Accounting Standards [NZ IAS 1, 8, 16]
Amendments to NZ IAS 1 Presentation of Financial Statements:
• Removes the disclosure requirement for donations;
• Relocates the NZ IFRS compliance and applicable financial reporting standard compliance statement disclosures to FRS 44;
• Relocates to FRS 44 the disclosure requirements of the reporting framework:
–The statutory basis or other financial reporting framework under which the financial statements are prepared;
–Whether the entity is profit-oriented or a public benefit entity;
–Whether the financial statements have been prepared in accordance with NZ GAAP; and –Whether the entity qualifies for differential
reporting concessions.
• Relocates the disclosure requirements of fees to auditors to FRS 44.
1 July 2011 HAA does not make donations.
The relocation of New Zealand specific disclosure statements in NZ IAS 1 to FRS 44 has no impact on the financial statements of HAA.
Amendments to NZ IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors The amendments remove the requirement to report changes in significant accounting policies within the summary of significant accounting policies section.
This amendment does not remove the requirement to report changes in significant accounting policies.
HAA presents changes in significant accounting policies within its summary of significant accounting policies and elects to continue doing so.
Amendments to NZ IAS 16 Property, Plant and Equipment
The amendments remove the requirement for all valuations to be conducted either:
By an independent valuer; or
By a person sufficiently experienced to conduct a valuation, so long as the valuation has been subject to review by an independent valuer.
The amendments further remove the requirements to disclose detailed information about the independent valuer engaged.
HAA employs an independent valuer to determine the fair value of its rental properties. Note 5 to the financial statements provides disclosures of the name of valuer employed, whether the valuer is contracted as an independent valuer, the total fair value of property, plant and equipment by that valuer and the date(s) of such valuations.
Other amendments resulting from the Annual Improvements Project to the following standards did not have any impact on the accounting policies, financial position or performance of HAA:
• NZ IAS 7 Amendments to Statement of Cash Flows
• NZ IAS 12 Amendments to Income Taxes
• NZ IAS 32 Amendments to NZ IFRS – Classification of Rights Issues
• Amendment to NZ IFRS 1 Limited Exemption from Comparative NZ IFRS 7 Disclosures for First-time Adopters
• Amendment to NZ IFRS 1 First-time Adoption of New Zealand Equivalents to International Financial Reporting Standards
• NZ IFRIC 19 – Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments
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• Amendments to NZ IFRIC 14 Prepayments of a Minimum Funding Requirement
• Amendments to NZ IFRS 7 Financial Instruments: Disclosures
• NZ IFRS 8 Operating Segments
• Amendment to NZ IAS 26 Accounting and Reporting by Retirement Benefit Plans (ii) New financial reporting requirements for PBEs
In May 2011, the Accounting Standards Review Board and the Financial Reporting Standards Board agreed on a
‘position statement’ that all NZ IFRSs with a mandatory effective date for annual periods beginning on or after 1 January 2012 will be applicable to profit-oriented entities only.
On 14 September 2011, the Government announced changes to the financial reporting framework. Following this announcement, the External Reporting Board (XRB) released an accounting standards framework document regarding the establishment of a set of NZ PBE standards based on the International Public Sector Accounting Standards (IPSAS) modified as appropriate for New Zealand circumstances. IPSAS will be the required accounting standard for PBEs as New Zealand moves to the adoption of multi-standards approach. The mandatory adoption of IPSAS for public sector has been moved to 1 July 2014 with restatement of comparatives for the year ending 30 June 2014.
HAA will adopt IPSAS as it applies to New Zealand from 1 July 2014. The impact on HAA with regard to adoption of IPSAS is not known at this stage, as the relevant guidance has not yet been rolled out. From the exposure draft released by the XRB, HAA is expected to be a Tier 2 reporter, as its expenses are between
$2 million and $30 million. Tier 2 reporters are expected to adopt the Reduced Disclosure Regime (RDR).
It is anticipated that the adoption of IPSAS will have less impact than the effect on HAA’s financial statements when it transitioned to NZ IFRS from 1 July 2007.
2 Operating expenses
2012 2011
($000) ($000)
Management fee 1,879 1,470
Consultants 64 128
Depreciation on rental property 120 121
Depreciation on property, plant and equipment 22 19
Premises security 41 31
Property maintenance 49 60
Insurance 68 30
Rates 447 236
Audit fees* 63 43
Property management expenses 358 175
Impairment on loan receivable 457 -
Other expenses 72 45
operating expenses 3,640 2,358
* Audit fees solely comprise the cost incurred to audit the financial statements.
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3 Land under development
2012 2011
($000) ($000)
land under development for resale 79,067 82,717
Land under development is measured at the lower of cost or net realisable value. The land relates to purchases of land at the former Hobsonville Airbase from the New Zealand Defence Force. For the purposes of assessing the realisable value of this property, land under development for resale has been valued as at 30 June 2012 as part of the overall Hobsonville site valuation, by Quotable Value New Zealand, a company employing registered and qualified valuers, with the principal registered valuer for the valuation being Kerry Stewart (PG Dip Env Audit, MBA, ANZIV, SNZPI).
The fair value is $124 million (2011: $113.8 million).
During 2011/2012, $8.36 million (2011: $3.16 million) was reclassified from land under development to properties intended for sale, as this land has been contracted for sale.