Financial Statements Notes




2446 NEW ZEALAND GAZETTE No. 101

Notes to the Financial Statements for the Year Ended 31 March 1999

1. Statement of Accounting Policies

Reporting Entity

The Bay of Plenty Community Trust Incorporated is a charitable trust registered under section 14 (i) of the Trustee Banks Restructuring Act 1988. The group consists of Bay of Plenty Community Trust Inc and its subsidiary Bay of Plenty Community Trust Charities Limited.

The financial statements have been prepared as required by the Trustee Banks Restructuring Act 1988 and the trust deed dated 30 May 1988 and in accordance with generally accepted accounting practice.

Measurement Base

The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on an historical cost basis are followed by the Group, with the exception of investments which are stated at market value as at 31 March 1999.

Specific Accounting Policies

The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied:

(a) Donations: Donations made during the year from revenue are included in the income statement. Those made from trust capital have been included in the statement of movements in equity.

(b) Investments: All investments are stated at assessed market value.

(c) Fixed Assets: Fixed assets are stated at cost less accumulated depreciation.

(d) Depreciation: Depreciation is charged to write off the cost of fixed assets over their expected economic lives using the diminishing value method at rates from 12 percent to 40 percent per annum.

(e) Accounts Receivable: Accounts receivable are recorded at their estimated realisable value.

(f) Financial Instruments: The trust includes all financial instrument arrangements in the balance sheet using the concept of accrual accounting. Financial instruments are valued as per note 1, measurement base. These instruments arise as a result of everyday operations and include bank, accounts receivable, accounts payable and investments. Revenues and expenses in relation to all financial instruments are recognised in the statement of financial performance. Financial instruments are shown at their fair values.

(g) Consolidation: The Bay of Plenty Community Trust and its subsidiary charitable company, Bay of Plenty Community Trust Charities Limited have been consolidated using the purchase method of consolidation.

Changes in Accounting Policies

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

2. Equity

1999 $'000 1998 $'000
Trust capital 89,308 89,308
General funds—
Opening balance 15,023 97,471
Less transfer to trust
capital 89,308
15,023 8,163
Plus transfer from
current year surplus 6,320 8,129
Less donations from
capital (341) (330)
Plus/(less): transfer
from investment
revaluation reserve 21,002 15,962
Transfer to income
fluctuation reserve (11,055) (962)
Transfer to inflation
and population reserve (9,947)
15,023
Investment revaluation
reserve—
Opening balance 23
Less transfer to general
funds 23
Income fluctuation
reserve—
Opening balance 962
Transfer from general
reserve 11,055 962
Inflation and population
reserve—
Transfer from general 9,947
reserve
Total equity $111,272 $105,293


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🏢 Bay of Plenty Community Trust Incorporated Annual Report for the Year Ended 31 March 1999 (continued from previous page)

🏢 State Enterprises & Insurance
5 August 1999
Trust, Community Trust, Annual Report, Bay of Plenty, Financial Performance, Community Contributions, Cash Flows, Investments