retirement.org.nz

The Retirement Commissioner was appointed under the Retirement Income Act 1993 and confirmed under the amended New Zealand Superannuation and Retirement Income Act 2001. The Office of the Retirement Commissioner is a Crown Entity under the Crown Entities Act 2004. These financial statements have been prepared in accordance with the requirements of the Crown Entities Act 2004. The Retirement Commission is a Public Benefit Entity.

 

The financial statements have been prepared under NZ IFRS. The financial statements have been prepared on an historical cost basis. The presentation currency is New Zealand dollars.

The following accounting policies, which materially affect the measurement of financial performance and financial position, have been applied.

The Retirement Commission derives revenue through the provision of outputs to the Crown, from cost recovery for the provision of services to third parties and from investment income. Such revenue is recognised when earned and is reported in the financial period to which it relates.

 

The financial statements are prepared on a GST exclusive basis, except accounts receivable and accounts payable which are stated inclusive of GST.

The initial cost of a fixed asset is the value of the consideration given to acquire or create the asset and any directly attributable costs of bringing the asset to working condition for its intended use. All fixed assets are recorded at historical cost less depreciation.

Fixed assets are depreciated on a straight line basis at rates that will write off the cost of the assets to their estimated residual value over their useful life.

 

The useful lives and associated depreciation rates used in the preparation of these statements are as follows.

 

Office equipment       2-13 years           7.8% - 48.0%

Furniture and fittings 5-15 years           6.5% - 25.2%

Computer equipment 3-6 years             15.5% - 60.0%

 

Intangible Assets

 

Software

Software is a finite life intangible and is recorded at cost less accumulated amortisation and impairment. Amortisation is charged on a straight line basis over the estimated useful life of the intangible asset.

 

The following amortisation rates are used in the calculation of amortisation:

 

Software                                             30.0% - 48.0%                  

 

The Office of the Retirement Commissioner leases office premises, a photocopier and a car park. As all the risks and ownership are retained by the lessor these leases are classified as operating leases. Operating lease expenses are recognised on a systematic basis over the period of the lease.

The Office of the Retirement Commissioner is party to financial instruments as part of its normal operations. These financial instruments include bank accounts, short-term deposits and creditors. All financial instruments are recognised in the Balance Sheet and all revenues and expenses in relation to financial instruments are recognised in the Profit and Loss.

Investments are stated at the lower of cost and net realisable value. Any write-downs are recognised in the profit and loss in the period in which they occur.

The Office of the Retirement Commissioner is a public authority in terms of the Income Tax Act 2004 and consequently is exempt from income tax.

 

Provision is made in respect of liability for annual leave. Annual leave is expected to be settled within 12 months (or approval gained to carry forward leave) of reporting date, and is measured at nominal values on an actual entitlement basis at current rate of pay.

 

No provision has been made for sick leave as the cost of doing so would exceed the benefits of reporting such a provision.

 

The Office of the Retirement Commissioner does not provide long service leave or retirement leave.

 

Accounts receivable are stated at net realisable value.

 

The Statement of Cash Flows is prepared exclusive of GST, which is consistent with the method used in the Profit and Loss.

 

Definitions of the terms used in the statement of cash flows are:

 

“Cash” includes coins and notes, demand deposits and other highly liquid investments readily convertible into cash and includes at call borrowings such as bank overdrafts, used by the entity as part of its day to day cash management.

 

“Investing activities” are those activities relating to the acquisition and disposal of current and non-current investments and any other non-current assets.

 

“Financing activities” are those activities relating to changes in equity of the entity.

 

“Operating activities” include all transactions and other events that are not investing or financing activities.