Statement of Accounting Policies prices from recognised financial markets (for example, NZX or offshore exchanges). Changes in market value are recognised in the Statement of Financial Performance in the period in which they arise. Dividends are recognised as revenue when received or receivable, provided it is probable that economic benefits will flow to the entity. Bonds (Measured at Cost) Bonds and other fixed‑interest investments are measured at cost, adjusted for accrued interest. These investments are reviewed for indicators of impairment at each reporting date. If there is objective evidence that the recoverable amount is lower than the carrying amount, an impairment loss is recognised in the Statement of Financial Performance. No revaluation to market value is performed for these investments under the cost‑based measurement approach. 1.9 Accounts Payable Accounts Payable are recorded at the amount of cash required to settle those liabilities. 1.10 Functional and Presentational Currency All balances within these financial statements are stated in New Zealand dollars ($). Amounts are rounded to the nearest dollar. 1.11 Inventory Inventory is stated at the lower of cost, determined on a "first-in-first-out" basis, and net realisable value. 1.12 Fixed Assets All owned items of Furniture and Fittings are initially recorded at cost, and depreciated using Diminishing Value as outlined below: - Office Furniture and Equipment 11.4% to 60% - Website 60% - Motor Vehicle 20% Where an item of furniture or equipment is disposed of, the gain or loss is recognised in the Statement of Financial Performance and is calculated as the difference between the net sale price and the carrying value of the asset. 1.13 Foreign Exchange Movements Transactions in foreign currencies are translated to NZD at the settlement rate. Monetary assets and liabilities denominated in foreign currencies in the Statement of Financial Position are translated to NZD at the foreign exchange rate ruling at that date. Foreign exchange differences arising on their translation are recognised in the Statement of Financial Performance. 1.14 Changes in Accounting Policies The Foundation has updated its accounting policies to comply with the XRB's Tier 3 (NFP) Standard, effective for periods beginning on or after 1 April 2024.The most significant change relates to the measurement of investments. Under the previous policy, share investments were measured at fair value through profit or loss and fixed‑interest investments were measured at market value when market value was below cost. Under the Tier 3 Standard, the Foundation has adopted the mixed‑measurement option, measuring share investments at current market value and fixed‑interest investments at cost unless market value is lower. There were no significant impacts on opening accumulated funds or the current‑year surplus as the carrying values of investments under the previous policy were consistent with the values required under the Tier 3 Standard. NEW ZEALAND RUGBY FOUNDATION INC. CC42547 35
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