22  Annual Report Measurement base The financial statements have been prepared on a historical cost basis, except where modified by the revaluation of library collections. Functional and presentation currency The financial statements are presented in New Zealand dollars and all values are rounded to the nearest dollar. The functional currency of the Law Commission is New Zealand dollars. Standards, amendments and interpretations issued that are not yet effective and have not been adopted early Standards, amendments and interpretations issued that are not yet effective and have not been adopted early and which are relevant to the Law Commission include: NZ IAS 1 Presentation of Financial Statements (revised 2007) replaces NZ IAS 1 Presentation of Financial Statements (issued 2004) and is effective for reporting periods beginning on or after 1 January 2009. The Law Commission intends to adopt this standard for the year ending 30 June 2010. The impact will be one of presentation. Significant accounting policies The following particular accounting policies which materially affect the measurement of financial performance and financial position have been applied: Revenue The Commission derives revenue from the provision of outputs to the Crown, the sale of its publications to third parties, provision of specialist services and income from investments. Revenue from the Crown Revenue is restricted in its use for the purpose of the Law Commission meeting its objectives as specified in the statement of intent. Such revenue is recognised when earned, is measured at the fair value of consideration received and is reported in the financial period to which it relates. Interest Interest income is recognised using the effective interest rate