2020 NEW ZEALAND GAZETTE No. 85

Note 1999 1998
$ $

Cash flows from investing activities—
Cash was provided from:
Sale of Government securities 856,806 232,000
Withdrawals from managed funds 6,000,000 10,000,000
6,856,806 10,232,000

Cash was applied to:
Investment in Government securities (8,116,586) (15,961,791)
Investment in managed funds — —
Investment in shares — —
Purchase of fixed assets (7,959) (21,112)

Net investing cash flows (1,267,739) (5,750,903)
Net increase (decrease) in cash held (707,903) (2,624,354)
Add cash at 1 April 8,549,403 11,173,757
Cash at 31 March 7,841,500 8,549,403

(The notes to the financial statements form part of and are to be read in conjunction with the above accounts.)

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

1. Statement of Accounting Policies

1.1 Reporting Entity

Trust Bank Eastern and Central Community Trust is a charitable trust incorporated in accordance with the provisions of the Trustee Banks Restructuring Act 1988.

The trust has a wholly owned company—Eastern and Central Community Trust Charities Limited which is registered under the Companies Act 1993.

The consolidated financial statements have been prepared in accordance with generally accepted accounting practice.

1.2 Measurement Base

The measurement base applied is that of historical cost adjusted for the market valuation of investments.

1.3 Specific Accounting Policies

The following are the particular accounting policies which have a material effect on the measurement of results and financial position.

1.3.1 Basis of Consolidation—Purchase Method

The consolidated financial statements include the trust and its wholly owned company accounted for using the purchase method. All significant inter-entity transactions are eliminated on consolidation. Both entities have a common balance date of 31 March.

1.3.2 Investment Income

Investment income is accounted for on an accruals basis recognising both realised and unrealised gains or losses in value.

1.3.3 Foreign Currency

Foreign currency balances are converted to NZD at the year end rate of exchange. Transactions completed during the year are converted at the rate applying at the date of the transaction. Foreign exchange gains and losses are included within the statement of financial performance.

1.3.4 Investments

Investments are recorded at market value at year end.

1.3.5 Cash

Cash comprises cash at bank, call deposits and short term deposits but does not include cash held by fund managers.

1.3.6 Donations

Donations are included in the statement of financial performance when approved by the trustees.

1.3.7 Fixed Assets

Fixed assets are recorded at cost less accumulated depreciation.

1.3.8 Depreciation

Depreciation is provided on a straight line basis on all tangible fixed assets at rates calculated to allocate the assets’ cost less estimated residual value, over their estimated useful lives.

The depreciation periods are:

• Computer equipment ... 3 years
• Fixtures and fittings ... 9 years
• Furniture ... 10 years
• Office equipment ... 5 years

1.3.9 Income Tax

Income tax is not provided as the trust has charitable status for tax purposes.

1.3.10 G.S.T.

Inclusive accounting has been adopted as the trust is not registered for G.S.T.