✨ Financial Statements Notes
3 JULY NEW ZEALAND GAZETTE
11. Financial Instruments
Investments are stated at estimated market value at balance date. Accrued interest, accounts payable, community loans, and donations approved not yet paid are stated at the amounts expected to be received or paid.
Accordingly, the trustees consider that the fair value of each class of financial assets and financial liabilities is the same as the carrying value in the statement of financial position.
Concentration of Credit Risk
Over 90 percent of the assets of the trust are represented by short term deposits with a range of financial institutions. However the trustees consider the risk of non-recovery of these investments to be within satisfactory guidelines.
Currency Risk
The trust incurs currency risk as a result of investment transactions entered into by Armstrong Jones (NZ) Limited. The currency, giving rise to currency risk, in which the trust primarily deals, is Australian dollars.
The trust hedges all the Armstrong Jones managed funds transactions denominated in Australian dollars through the National Bank of New Zealand Limited.
Interest Rate Risk
The following investments of the trust are sensitive to changes in interest rates: bank call accounts and deposits, Government and local authority securities, and various debt securities held with Armstrong Jones (NZ) Limited/Managed Funds.
12. Taxation
| 1997 $ | 1996 $ | |
|---|---|---|
| Net income before taxation as per statement of financial performance | 37,227,796 | 14,945,457 |
| Add: | ||
| Non deductible expenditure | 145,752 | 551,186 |
| Imputation credits received | 4,137,658 | 6,205,970 |
| Canterbury Trust House Limited loss non deductible | 6,093 | – |
| Less non assessable income: | ||
| Allocated as beneficiaries income | (22,913,047) | (2,770,364) |
| Donations to tax approved entities | (6,194,864) | – |
| Assessable income for tax purposes | 12,409,388 | 18,932,249 |
| Less: loss carry forward entitlement | – | 2,363 |
| Taxable income | 12,409,388 | 18,929,886 |
| Taxation @ 33 percent | 4,095,098 | 6,246,862 |
| Less: imputation credits received | (4,137,658) | (6,205,970) |
| Taxation as per statement of financial performance | – | 40,892 |
| Excess imputation credits | (42,560) | – |
| Converted to loss to carry forward | (128,970) | – |
| Voluntary tax paid | 20,941 | 60,000 |
| Resident withholding tax | 4,712,174 | 20,948 |
| Taxation payable (refund) as per the statement of financial position | $(4,733,115) | $(40,056) |
Auditors’ Report
We have audited the consolidated financial statements. The consolidated financial statements provide information about the past financial performance of the Trust Bank Canterbury Community Trust Inc. and its financial position as at 31 March 1997. This information is stated in accordance with the accounting policies set out therein.
Trustees’ Responsibilities:
The trustees are responsible for the preparation of consolidated financial statements which give a true and fair view of the financial position of the Trust Bank Canterbury Community Trust Inc. as at 31 March 1997 and of the results of its operations and cash flows for the year ended on that date.
Auditors’ Responsibilities:
It is our responsibility to express an independent opinion on the consolidated financial statements presented by the trustees and report our opinion to you.
Basis of Opinion:
An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the consolidated financial statements. It also includes assessing:
- the significant estimates and judgments made by the trustees in the preparation of the consolidated financial statements, and
- whether the accounting policies are appropriate to the circumstances of the trust, consistently applied and adequately disclosed.
We conducted our audit in accordance with generally accepted auditing standards in New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the consolidated financial statements are free from material misstatement.
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NZ Gazette 1997, No 66
✨ LLM interpretation of page content
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Notes to the Financial Statements for the Year Ended 31 March 1997
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Trust Funds, Reserves, Depreciation, Contingent Liabilities, Related Party Transactions