129.037-Mahitahi-Hauora-Annual-Report-2023-24-v8---Low-Res-Spreads (1) - Flipbook - Page 44
Notes to the Financial Statements for the Year Ended - 30 June 2024
ii. Revenue from non-exchange
transactions
Non-exchange transactions as
detailed in note 6, are those where
the Trust receives an inflow of
resources (i.e. cash and other
intangible items) but provides no
(or nominal) direct consideration in
return.
Note 6 Income from General
Practices - this revenue is
considered as non-exchange, it is
an agreed amount charged to the
general practices based on their
patient numbers at a certain date to
cover only a portion of their costs.
With the exception of services
in-kind, inflows of resources from
non-exchange transactions are only
recognised as an asset where both:
With the exception of services
in-kind, inflows of resources from
non-exchange transactions are only
recognised as an asset where both:
- It is probable that the associated
future economic beneot or service
potential will flow to the entity, and
- Fair value is reliably measurable.
Inflows of resources from nonexchange transactions that are
recognised as assets are recognised
as non-exchange revenue, to the
extent that a liability is not recognised
in respect to the same inflow.
Liabilities are recognised in relation
to inflows of resources from nonexchange transactions when there
is a resulting present obligation
as a result of the non-exchange
transactions, where both:
- It is probable that an outflow
of resources embodying future
economic beneot or service
potential will be required to settle
the obligation, and
- The amount of the obligation can
be reliably estimated.
(b) Interest income
Interest income is recognised as it
accrues using the effective interest
method.
44.
(c) Employee beneots
Short-term employee beneots
liabilities are recognised when the
Trust has a legal or constructive
obligation to remunerate
employees for services provided
wholly within 12 months of the
reporting date, and is measured
on an undiscounted basis and
expensed in the period in which
employment services are provided.
(d) Financial Instruments
i. Recognition and initial
measurement
Trade receivables issued are
initially recognised when they are
originated. All other onancial assets
and onancial liabilities are initially
recognised when the Trust becomes
a party to the contractual provisions
of the instrument.
A onancial asset or onancial
liability is initially measured at
fair value plus transaction costs
that are directly attributable to
its acquisition or issue. At initial
recognition, an entity may measure
short-term receivables and
payables at the original invoice
amount if the effect of discounting
is immaterial.
ii) Classiocation and subsequent
measurement
Financial assets
On initial recognition, a onancial
asset is classioed as measured at:
amortised cost.
A onancial asset is measured at
amortised cost if it meets both of
the following conditions:
- it is held within a management
model whose objective is to hold
assets to collect contractual cash
flows; and
- its contractual terms give rise on
specioed dates to cash flows that
are solely payments of principal and
interest on the principal amount
outstanding.
Financial assets 3 Management
model assessment
The Trust9s cash and cash
equivalents, short term deposits,
and receivables are classioed as
onancial assets at amortised cost.
GST and prepayments are not
included.
Cash and cash equivalents
represent highly liquid investments
that are readily convertible into
a known amount of cash with an
insigniocant risk of changes in
value, with original maturities of 3
months or less. Short term deposits
are those with an original maturity
of more than 3 months.
Financial assets 3 Subsequent
measurement and gains and
losses
Financial assets at amortised cost
- These assets are subsequently
measured at amortised cost using
the effective interest method.
The amortised cost is reduced by
impairment losses. Interest income
and impairment are recognised in
surplus or deocit. Any gain or loss
on derecognition is recognised in
surplus or deocit.
Financial liabilities 3 Classiocation,
subsequent measurement and
gains and losses
All of the Trust9s onancial liabilities
meet the criteria to be classioed as
measured at amortised cost. These
onancial liabilities are subsequently
measured at amortised cost using
the effective interest method.
Interest expense and foreign
exchange gains and losses are
recognised in surplus or deocit. Any
gain or loss on derecognition is also
recognised in surplus of deocit.
(iii) Derecognition
Financial assets
The Trust derecognises a onancial
asset when the contractual rights
to the cash flows from the onancial
asset expire, or it transfers the
rights to receive the contractual
cash flows in a transaction in
which substantially all of the risks
and rewards of ownership of the
onancial asset are transferred or in
which the Trust neither transfers
nor retains substantially all of the
risks and rewards of ownership
and it does not retain control of the
onancial asset.
