21 Notes to the financial statements 1   Statement of accounting policies for the year ended 30 June 2009 Reporting entity The Law Commission is an independent Crown entity for legislative purposes, established by the Law Commission Act 1985. The Law Commission is domiciled in New Zealand and as such its ultimate parent is the New Zealand Crown. The Law Commission�fs primary objective is to review areas of the law that need updating, reforming or developing and to make recommendations to the New Zealand Parliament. The Law Commission is accordingly a public benefit entity for the purposes of New Zealand Equivalents to International Financial Reporting Standards (�gNZ IFRS�h). The financial statements are for the year ended 30 June 2009 and were approved by the Commissioners on 18 September 2009. Basis of preparation Statement of compliance These financial statements have been prepared in accordance with the Law Commission Act 1985 and the Crown Entities Act 2004 which includes the requirement to comply with New Zealand generally accepted accounting practice (�gNZ GAAP�h). They comply with NZ IFRS and other applicable Financial Reporting Standards, as appropriate for public benefit entities. The accounting policies set out below have been applied consistently to all periods in these financial statements. 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.