Here is a good article on ammonia
http://www.ca.uky.edu/wkrec/ManagingAmmonia.pdf
http://www.practical-water-gardens.com/ammonia.htm
Why Test Pond Water for Ammonia?
The answer is simple! Ammonia is the #1 killer of aquatic life. This toxic chemical in high enough concentrations poisons the fish!
Ever wondered why a goldfish living in a goldfish bowl doesn't live very long? It is systematically poisoned by the ammonia excreted into its home through urine, waste matter and decaying fish food.
A healthy pond where the biological pond filter is working correctly will register a nil ammonia reading.
All new ponds have a bedding in period whilst colonies of Nitrosomonas and Nitrobacter beneficial bacteria start to colonize. As mentioned earlier they convert ammonia into nitrate.
These bacteria consume vast amounts of oxygen as part of this process. It is always a good idea to add additional oxygen in the form of a Fountain or Pond Aerator.
In newly established ponds, without an adequately functioning biofilter you will often find an ammonia reading of 10 parts per million (ppm) or more. This will drop as the biofilter beds in and the colonies of bacteria have built up.
As a general rule an ammonia reading of more than 0.25 ppm is an indicator of one or more of the following problems: Overfeeding, overstocking or too much decaying plant life. The increased ammonia level is not necessarily an indicator of the elevated nitrite level. The nitrite level should be tested separately on a regular basis.
A new pond filter will take between 2 to 4 weeks to establish a big enough colony of nitrifying bacteria to successfully breakdown ammonia, as it appears. Don't forget that during the initial month you must not add more than 2 fish per week. After both ammonia and nitrite levels drop to nil, more pond fish and aquatic life can be added.
If ammonia is still present after a month then: reduce feeding for one week, remove debris from the pond floor and ensure there is adequate oxygen and surface agitation. If the ammonia reading is greater than 0.50 ppm then change 25% of the pond water every 2 days until the pH reaches 0.25 ppm or less.