1584 NEW ZEALAND GAZETTE No. 66

Goods and Services Tax

The subsidiary of Canterbury Community Trust Charities Limited, Canterbury Trust House Limited is registered for G.S.T. Accordingly its financial performance and financial position have been consolidated within the accounts on a G.S.T. exclusive basis.

Subject to the above, the trust is not registered for G.S.T. purposes and therefore the financial statements have been prepared on a G.S.T. inclusive basis.

Financial Instruments

Foreign currency transactions are translated to New Zealand currency at the exchange rate ruling at the dates of the transactions. Amounts receivable and payable in foreign currencies at balance date are translated at the exchange rate at that date. Exchange differences arising from the translation of amounts payable and receivable in foreign currencies are recognised in the statement of financial performance.

Off-balance sheet financial instruments that are designated as hedges are recognised on the same basis as the underlying hedged item. Off-balance sheet transactions that do not constitute specific hedges are stated at market value and any resultant gain or loss is recognised in the statement of financial performance.

Basis of Consolidation

The Trust Bank Canterbury Community Trust Inc., Canterbury Community Trust Charities Limited and its subsidiary Canterbury Trust House Limited have been consolidated using the purchase method of consolidation.

Changes in Accounting Policies

Realised gains on sale of investments which were previously credited to the revaluation reserve are transferred direct to the core real capital base reserve. The accounting policy in the previous years was for this transfer to go to the statement of financial performance. The effect of this change in policy is for the gain on sale of Trust Bank New Zealand Limited shares to be transferred direct to the core real capital base reserve.

There have been no other changes in accounting policies. All other policies have been applied on bases consistent with those used in the previous year.

2. Investments

Brief History

During 1994 the trust transferred 119,998,000 Trust Bank New Zealand Limited shares to Community Trust Nominees Limited (CTN) which held the shares as bare trustee. Altogether CTN holds 337,654,000 Trust Bank New Zealand Limited shares as bare trustee for various community trusts through their investments in Community Trusts Investments Limited (CTIL). CTN had a share capital of $100 consisting of 100 $1 shares, and was wholly owned by CTIL. During the year the shares in TBNZ and CTI were sold and the funds received were invested in a range of short term deposits, pending fund manager appointments to allow appropriate diversification of the portfolio.

The investment property situated at 262 Oxford Terrace, Christchurch is shown in the statement of financial position at cost. As the investment property has not yet been completed an independent valuation has not yet been performed. Therefore a net current value as required by SSAP-17 are not available.

Particulars of the most recent Government valuation is as follows:

3. Donations

The names of organisations to whom distributions have been made by the trust under section 21 of the Trustee Banks Restructuring Act 1988 during the financial year and the amounts distributed are shown in the annual report.