Statement of Accounting Policies Statement of Accounting Policies Marlborough District Council is a unitary authority located in New Zealand that is (ii) Prospective financial statements governed by the Local Government Act 2002 (LGA). The relevant legislation governing The prospective financial statements comply with Tier 1 PBE Accounting Council’s operations includes the LGA and the Local Government (Rating) Act 2002. Standards. The prospective financial statements have been prepared using the best information available at the time they were prepared. These prospective financial statements of Marlborough District Council (MDC) are for the years commencing 1 July 2018 and ending on 30 June 2028. The prospective financial statements comply with PBE FRS 42 Prospective Financial Statements . The information in this prospective financial statements These prospective financial statements were authorised for issue by Council on may not be appropriate for purposes other than those described. 28 June 2018. (iii) Measurement Base 1. Reporting Entity The prospective financial statements have been prepared on a historical cost basis, modified by the revaluation of certain assets. MDC is not presenting group prospective financial statements as the Council believes that parent statements are more relevant to users. The main purpose of these (iv) Functional and Presentational Currency statements is to provide users with information about the core services that the The prospective financial statements are presented in New Zealand dollars and Council intends to provide to ratepayers, the expected cost of those services and the all values are rounded to the nearest thousand dollars ($000’s). The functional consequent requirement for rate funding. The level of rate funding required is not currency of MDC is New Zealand dollars. affected by subsidiaries except to the extent that the Council obtains distributions from, or further invests in, those subsidiaries and such effects are included in these parent (v) prospective financial statements. Changes in Accounting Policies There have been no significant changes in the accounting policies and These prospective financial statements therefore reflect the activities and position of accounting policies have been applied consistently to the prospective financial MDC plus the Council’s 88.5% share in the joint committee Marlborough Regional statements in MDC’s 2017-18 Annual Plan; to the financial statements for the Forestry, which is also domiciled in New Zealand. year ended 30 June 2017; and to these prospective financial statements. The primary objective of MDC is to provide goods and services for the community or (vi) Accounting Estimates and Assumptions and Critical Judgments in social benefit rather than making a financial return. Accordingly, Council has Applying Accounting Policies designated itself as public benefit entities (PBE). In preparing these prospective financial statements MDC has made estimates and assumptions concerning the future. These estimates and assumptions 2. Basis of Preparation may differ from the subsequent actual results. Estimates and assumption are continually evaluated and are based on historical experience and various other These prospective financial statements have been prepared in accordance with Tier 1 factors that are believed to be reasonable under the circumstances. PBE Accounting Standards. As a result of applying the new accounting standards, there have been no significant changes in the Council’s accounting policies. The actual results achieved are likely to vary from the information presented and the variations may be material. (i) Statement of Compliance The prospective financial statements of the Council have been prepared in 3. Significant Accounting Policies accordance with the requirements of the LGA: sections 95, 100, 101, 111 and (i) Part 2 of Schedule 10 which includes the requirement to comply with Generally Investments in Subsidiaries Accepted Accounting Practice in New Zealand (NZ GAAP). Investments in subsidiaries are recorded in the parent entity’s financial statements at cost less any subsequent accumulated impairment losses. 2018-2028 Long Term Plan Page 240