✨ Financial Statements Notes
31 JULY
NEW ZEALAND GAZETTE
1957
Capital Maintenance Reserve
The capital maintenance reserve represents the additional amount necessary to preserve the real value of the capital allowing for inflation as measured by the consumers’ price index (C.P.I.).
Investments
Investments are valued at year end market value. All realised and unrealised gains and losses are recognised in the statement of financial performance.
Hedging Instruments
The trust through its investment managers enters into hedging instruments such as futures, options and forward exchange contracts. These are converted to the New Zealand dollar rate at balance date with all realised and unrealised gains and losses being recognised in income and expenditure as income from managed funds.
Statement of Cash Flows
Cash comprises cash at bank and call deposits but does not include cash or deposits held by the fund managers.
Changes in Accounting Policies
Donations are now accounted for on a cash basis (previously donations were accounted for when approved by trustees).
Income from managed funds is now shown gross of investment management fees (1996 net).
There have been no other material changes in accounting policies during this accounting period.
| 1997 $000 | 1996 $000 | |
|---|---|---|
| 1. Revenue | ||
| Dividend—Trust Bank New Zealand | 1,680 | 2,520 |
| Interest | 5,914 | 357 |
| Managed funds | 8,043 | 8,466 |
| Sale of Trust Bank New Zealand shares (Note 5) | 9,150 | — |
| Other | — | 30 |
| $24,787 | $11,373 |
| 1997 $000 | 1996 $000 | |
|---|---|---|
| 2. Expenditure | ||
| Depreciation | 9 | 11 |
| Occupancy | 18 | 18 |
| Other operating | 66 | 48 |
| Professional fees | 409 | 242 |
| Promotion | 72 | 8 |
| Public and statutory reporting | 2 | 2 |
| Staff | 142 | 119 |
| Trustee fee | 71 | 51 |
| Trustee expenses | 28 | 13 |
| $817 | $512 |
Professional fees—Taylor McLachlan:
| | 1997 $000 | 1996 $000 |
|---------------------|-----------|-----------|
| Audit fees | 3 | 1 |
| Other professional fees | 5 | 6 |
| Community Trust Investment Limited | 50 | 6 |
| Legal advisors | 4 | 12 |
| Investment management fee | 239 | 217 |
| Professional investment advisers | 87 | — |
| Other | 21 | — |
| | $409 | $242 |
| 1997 $000 | 1996 $000 | |
|---|---|---|
| 3. Donations | ||
| Donations paid from income | 1,468 | 1,699 |
| Donations paid from capital | 513 | — |
| Committed but not yet disbursed | — | 1,402 |
| Effect of the change in accounting policy | (461) | — |
| $1,520 | $3,101 |
For ease of presentation and for taxation reasons the accounting policy has been altered to show only donations paid during the period. Donations which the trust has conditionally approved but not yet paid are shown in the accounts as a contingent liability (see Note 9).
4. Trust Funds
The trust funds balance comprises the following:
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NZ Gazette 1997, No 79
✨ LLM interpretation of page content
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Notes to the Consolidated Financial Statements for the Year Ended 31 March 1997
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Financial Statements, Capital Maintenance, Investments, Hedging, Cash Flows, Revenue, Expenditure, Donations, Trust Funds