Notes to the Financial Statements for the year ended 30 June 2023 1. Statement of accounting policies Reporting entity The Human Rights Commission is a Crown entity as defined by the Crown Entities Act 2004. The Commission’s functions and responsibilities are set out in the Human Rights Act 1993 and Crimes of Torture Act 1989 and it has designated itself as a public benefit entity (PBE) for financial reporting purposes. The financial statements of the Commission are for the year ended 30 June 2023 and were approved by the Board of the Commission on 30 October 2023. Basis of preparation The financial statements have been prepared on a going concern basis and the accounting policies have been applied consistently throughout the period. Statement of compliance The financial statements of the Commission have been prepared in accordance with the requirements of the Crown Entities Act 2004, which includes the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP). These financial statements have been prepared in accordance with Tier 2 PBE accounting standards as appropriate for public sector entities. The Commission is eligible to apply Tier 2 PBE accounting standards because it does not have public accountability, as defined in the PBE accounting standards, and its total expenses are less than $30 million. These financial statements comply with PBE accounting standards. Presentation currency and rounding The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars ($000). Summary of significant accounting policies Revenue Revenue is measured at the fair value of consideration received or receivable. The specific accounting policies for significant revenue items are explained below: Revenue from the Crown The Commission is primarily funded by revenue received from the Crown through the Ministry of Justice for the provision of outputs. This funding is dedicated to the Commission meeting the objectives specified in the Human Rights Act 1993 and Crimes of Torture Act 1989 and the scope of the relevant appropriations of the funder. The Commission considers there are no conditions attached to the funding and it is recognised as non-exchange revenue at the point of entitlement. The fair value of revenue from the Crown has been determined to be equivalent to the amounts due in the funding arrangements. Interest received Interest revenue is recognised using the effective interest method. Provision of services Services provided to third parties on commercial terms, such as the provision of advice and educational workshops, are exchange transactions. Revenue from these services is recognised in proportion to the stage of completion at balance date. Grants received Grants are recognised as revenue when they become receivable unless there is an obligation in substance to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance and recognised as revenue when conditions of the grant are satisfied. 59