RE: ACCOUNTING INFORMATION IN MAORI BUSINESS
Introduction
The establishments of Māori serve many functions. In other words, the organizations are meant to make profits and balance in being fiscally worthwhile concerning the social and cultural aspirations of the people of the Māori. However, their areas of business are fisheries, forestry, and agriculture. Since an organization possesses most assets of Māori, accounting information is mainly based on those organizations. Therefore, the report is focused on Tuhoe’s accounting information regarding the concept of Kaitiakitanga, investment performance, asset base, and net worth.
Discussion
The concept of kaitiakitanga and how it informs the investment decisions of iwi leadership
Kaitiakitanga refers to the task of guard ship or the duty of protection. Its responsibility is related to protecting natural resources like sea, land, and waterways. Also, protecting plants and animals, including human beings that make up the components of the physical ecosystem. Thus, Kaitiakitanga is a concept of individuals who are given the responsibility to guard the environment and society’s cultural values. However, iwi owns the kaitiaki duties on the residents and their land; therefore, in case of any destruction of the natural resources, the iwi bears the duty of protecting it. In addition to this, the iwi has the responsibility of protecting their hapu and whānau. Concerning the investment, Maori have successfully integrated the concept of kiatiakitanga into their businesses. However, the concept ensures the company’s management has conserved and preserved the organizational resources for future purposes. Besides that, the concept assists organizations to fully utilize their assets in order to maximize the revenue they generate.
Tūhoe’s investment performance in terms of the return on assets and the return on equity in 2018
The investment performance of Tūhoe’s is measured by return on asset and return on equity. These measurements offer a foundation for gauging how the fiscal performance of Tuhoe. However, an increase in both the return on assets and the return on equity shows that as Tuhoe increases its investments, its revenue increases. On the other hand, a reduction in investment may lead to low benefits. According to TDB report (2018), Tuhoe’s investment performance was low and indicated by a decrease in return on assets and equity, which was noticed to be 4% from the previous years. The low income from the CNI implies that the resource invested had little or no income growth due to the decline in the return on investments, which leads to poor investment performance. Tuhoe’s poor investment performance is also reflected in return on equity. Continuous reduction of return on equity is a clear indication that the company has been investing in low investing projects that generate fewer earnings for the organization.
The asset base and net worth of Tūhoe over the years 2014 to 2018
Tuhoe’s assets base and net worth increased across the four years. In 2014 and 2015, the increase in both the assets base and net worth is accredited by the settlement in which Tuhoe got from the Crown. However, in 2016, the asset base rose by 11%, and net worth by 10% in which the increase can be attributed by the settlements gotten by Tuhoe and the net overflows recorded in the previous years. Additionally, the increase in both the asset base and net worth in 2018 can be attributed to Tuhoe’s fiscal portfolio, which offers resource expansion and cash dividends. When the base asset and net worth of Ngāti Whātua Ōrākei and Ngāi Tahu are compared, Ngāti Whātua Ōrākei’s both the asset base and net worth rose due to surplus land purchased and the improvements in the management of the portfolio. While 2018, the asset base and the net worth reduced the reduction in the housing arcade of Auckland, as indicated by The TDB report (2018). Finally, Ngāi Tahu’s values increased across the years because of the various dependence disbursements from the Crown.
Conclusion
Māori businesses have several traditions and cultural values, and since their resources are gotten from the environment, their organizations possess most of their enterprises. However, the resources they possess must be protected and passed on to the next generation to continue with the duty of guarding through the concept of Kaitiakitanga. The RoA and the RoE of Tūhoe in 2018 decreased to 4% due to the low revenues from the CNI iwi collective rendering the investment performance low. Secondly, the asset base and net worth of Tūhoe increased across the four years, and its increase is attributed by the settlements gotten from Te crown. While the asset base and net worth of Ngāti Whātua Ōrākei and Ngāi Tahu are compared, Ngāi Tahu’s values increased significantly across the four years because of the contingency clearance while that of Ngāti Whātua Ōrākei reduce in 2018 relative to the reduction in the housing market of the Auckland.