Financial reporting of assets considered

Iwi need to consider the best way in which to record receipt of fisheries settlement assets, Te Ohu Kaimoana chief executive Peter Douglas says.

In a letter to iwi organisations this month, Peter said the principles to be followed when undertaking valuation of the assets and the rules to be followed when recording and reporting an iwi's financial statements were complex.

“The issue of accounting for the receipt of assets was considered by us when we prepared our 2005 annual report,” he said. While accounting standards were not particularly clear on the issues, especially in regard to statutory allocations and reporting for Trusts, Te Ohu Kaimoana believes that fisheries assets received by iwi are a receipt of capital and should be recorded in movements in equity.

Te Ohu Kaimoana circulated to iwi an Ernst and Young commentary on the major issues that needed to be considered. The commentary dealt with income shares in Aotearoa Fisheries Ltd and accounting for statutory allocations.

Mr Douglas said recording allocations in financial statements as movements in equity was preferable to recording them as receipts through the profit and loss statement. “This reflects the position of iwi receiving title to assets previously held in trust on their behalf by Te Ohu Kaimoana, in accordance with the provisions of the Maori Fisheries Act 2004,” he said.

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Tiakina ngā rawa hi ika, a tātou kaimoana mo ngā uri whakaheke
Protecting Māori fisheries assets for future generations

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