✨ Financial Statements and Accounting Policies
2032 NEW ZEALAND GAZETTE No. 83
Particular Accounting Policies
The following are the particular accounting policies which have a material effect on the measurement of results and financial position:
(a) Dividend Income—Dividend income is included in the income and expenditure account when it is received.
(b) Donations—Donations and special projects are included in the income and expenditure account on an accruals basis as from 1 April 1994. An accrual of $751,496 has been made for donations approved but not yet paid this year (1996—$95,120).
(c) Investments—Investments are shown at market value. Unrealised gains or losses from holding such investments are transferred directly to the revaluation reserve. These unrealised gains or losses when realised on subsequent disposal of investments are transferred from the revaluation reserve direct to the statement of financial performance. Differences between sale proceeds and book value of investments are also recorded in the statement of financial performance.
(d) Fixed Assets—Fixed assets are recorded at cost and depreciated on the straight line method based on the estimated life of the asset.
(e) Income Tax—The trust provides for income tax on its net income after adjusting for tax accounting differences and any beneficiaries income determinations made pursuant to section OB1 (226) of the Income Tax Act.
(f) Basis of Consolidation—The Trust Bank South Canterbury Community Trust Inc. and South Canterbury Community Charities Limited have been consolidated using the purchase method.
Changes in Accounting Policies
The policy with respect to investments has changed during the year from stating the investments at cost to stating at market value. The value of this change has resulted in the reduction of the operating surplus of $60,208. The trust has also changed its accounting policy for income tax. There is no monetary effect from the change. The other accounting policies remain unchanged from the previous year.
2. Investments
| 1997 $ | 1996 $ | |
|---|---|---|
| Shares— | ||
| Trust Bank New Zealand Limited | – | 7,389,000 |
| New Zealand Government stock | 4,015,616 | – |
| New Zealand shares | 1,951,380 | – |
| New Zealand property shares | 544,700 | – |
| Australian property shares | 441,560 | – |
| Endowment fund investment | – | 25,984 |
| 6,953,256 | 7,414,984 | |
| Less New Zealand Government | ||
| stock - short term | 2,400,000 | – |
| $4,553,256 | $7,414,984 |
3. Undistributed Income
| 1997 $ | 1996 $ | |
|---|---|---|
| Balance brought forward | 1,344,243 | 753,997 |
| Plus current year's profits | 24,705,719 | 590,246 |
| Less transfers to capital | ||
| reserve | (24,698,148) | – |
| $1,351,814 | $1,344,243 |
4. Capital Reserve
| 1997 $ | 1996 $ | |
|---|---|---|
| Balance brought forward | – | – |
| Plus transfer from undistributed | ||
| income | 24,698,148 | – |
| $24,698,148 | $– |
5. Revaluation Reserve
| 1997 $ | 1996 $ | |
|---|---|---|
| Balance brought forward | – | – |
| Revaluation of investments | ||
| to market value | (60,208) | – |
| Transfer of debit balance | 60,208 | – |
| $– | $– |
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NZ Gazette 1997, No 83
✨ LLM interpretation of page content
💰
Notes to the Consolidated Financial Statements for the Year Ended 31 March 1997
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Dividend Income, Donations, Investments, Fixed Assets, Income Tax, Basis of Consolidation
💰 Changes in Accounting Policies
💰 Finance & RevenueAccounting Policy Changes, Investments, Income Tax
💰 Investments
💰 Finance & RevenueInvestments, Shares, Government Stock, Property Shares, Endowment Fund
💰 Undistributed Income
💰 Finance & RevenueUndistributed Income, Current Year's Profits, Transfers to Capital Reserve
💰 Capital Reserve
💰 Finance & RevenueCapital Reserve, Transfer from Undistributed Income
💰 Revaluation Reserve
💰 Finance & RevenueRevaluation Reserve, Revaluation of Investments, Transfer of Debit Balance