3608

NEW ZEALAND GAZETTE

No. 150

Depreciation .................................................. $71,004 $43,285
(2,500,057) (4,110,310)
Net cash provided by operating activities ............. ($1,543,071) ($5,632,577)

10. Financial Instruments

General

The group states its investments at balance date at estimated market value. The trustees consider that the fair value of the financial assets is identical to the value in the statement of financial position.

Concentration of Credit Risk

The group has significant funds in trading bank deposits, and in TeNZ Fund units. The group limits risk by spreading the deposits over several trading banks, and the TeNZ Fund’s policy of selecting 10 investments in its portfolio also limits the risk. The group has not required collateral or other security to support its financial statements. The group further limits risk through its policy of placing investment funds with 4 separate fund managers, with each fund manager having an investment mandate which requires that they diversify their investments on the group’s behalf. The group has sought and obtained the advice of a professional financial adviser prior to making its investment allocation and placement decisions.

Interest Rate Risk

The bank deposits are sensitive to changes in interest rates, as are a proportion of the funds managed by the fund managers. Loans and advances do not carry interest, and therefore do not hold any interest rate risk.

11. Tax Calculation

Net surplus as per statement of financial performance ............... $9,722,129 $14,300,201
Less:
Dividend income on black-list equities ........................ (2,225,532) -
Charitable business exemption .............................. (727,654) -
Realised gains on black-list equities ........................ (4,570,720) -
(7,523,906) -
Add: Unrealised loss on New Zealand equities .................... 68,485 -
Unrealised loss on greylist equities ...................... 2,411,197 -
Unrealised loss on blacklist equities ..................... 4,087,392 -
FIF income .............................................. 2,708,860 -
Non deductible expenditure .............................. 391,430 -
Imputation credits received ............................. 494,665 530,505
RWT credits received .................................... 43,635 -
NRWT credits received ................................... 102,894 -
10,308,558 530,505
Total taxable income ......................................... 12,506,781 14,830,706
Less:
Allocation of beneficiaries’ income to the charitable company (11,100,000) (10,060,428)
Non-taxable equity accounting income ........................ (16,202) 20,080
Allocation of beneficiaries’ income to tax exempt entities ... (106,284) -
(11,222,486) (10,060,428)
Total trustees’ income ....................................... 1,284,295 4,770,278
Less: tax losses brought forward ............................. 0 (228,452)
Assessable income for tax purposes ........................... 1,284,295 4,541,826
Taxation @ 33 percent ...................................... 423,817 1,498,803
Less:
Imputation credits received .............................. (494,665) 530,505
Foreign tax credits on overseas dividends ................ (102,894) -
Tax effect of permanent differences .................... - 968,298
Resident withholding tax ............................... (43,635) -
Taxation payable/refund plus excess imputation credits ... (217,377) Nil
(526,490) -
Made up of:
Resident withholding tax refunded ...................... (43,635) -
Excess imputation credits .............................. (173,742) -
(217,377) -
Excess imputation credits converted to loss to carry forward ... (526,490) -
Total loss to carry forward ................................ ($526,490) Nil