Human Rights Commission Notes to the Financial Statements for the year ended 30 June 2015 1 Statement of accounting policies Reporting entity The 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 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 2015 and were approved by the Board of the Commission on 2 November 2015. 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. 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. These financial statements are the first financial statements presented in accordance with the new PBE accounting standards. No material adjustments arose on transition to the new PBE accounting standards. Annual Report 2015 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 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. Rental revenue Lease receipts under an operating sublease are recognised as revenue on a straight-line basis over the lease term. 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. 43