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Model Financial Statements: Tutuki Tertiary Institute 2015

The tertiary model financial statements released in January 2016 has been updated to reflect Audit New Zealand’s views on accounting for tertiary revenue under the new PBE accounting standards. The main updates to the model have been to the revenue accounting policies and Note 31 Adjustments to the Comparative Year Financial Statements. The revenue related updates are highlighted in yellow.

Determining the appropriate accounting treatment for some TEI revenue streams (for example, SAC funding, student tuition fees, PBRF, and research funding) can require significant judgement. The updated accounting policies in this model reflect Audit New Zealand’s views in applying the new PBE accounting standards, particularly PBE IPSAS 23 Revenue from Non-Exchange Transactions. For some revenue streams, acceptable alternative accounting treatments may be reasonably argued.

We encourage tertiaries to discuss their revenue accounting policies with their auditor to ensure there is agreement on the appropriateness of the revenue accounting policies applied by the tertiary.

Our updated series of model financial statements have been prepared to comply with the new Public Benefit Entity (PBE) accounting standards. We provide model financial statements to help reduce the compliance costs to entities of preparing financial statements to conform with generally accepted accounting practice. We have prepared our models to fully reflect presentation and disclosure requirements of the standards. The models do not represent audit requirements.

An entity might choose not to present or disclose items required by the standards, depending on its circumstances and its consideration of what’s important to its financial statement users. Using our model financial statements does not remove the need or responsibility for governors and managers of entities to fully consider the disclosures made in the financial statements.

Debate continues about the volume of disclosures and the readability of financial statements. We are currently considering the approaches taken by entities to address these. During 2016, we plan to release an update to one of our model financial statements that reflects current thinking and practice.

Page last updated: 24 March 2016

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