✨ Financial Statements and Accounting Policies
NEW ZEALAND GAZETTE
No. 131
G. Basis of Recognising Components of the Financial Statements
The following general accounting policies are adopted:
Assets
A transaction results in an asset being recognised in the statement of financial position when it will probably give rise to ongoing benefits for the group and those benefits can be measured with reliability.
Liabilities
A transaction results in a liability being recognised in the statement of financial position when it will probably give rise to the need for the group to sacrifice assets in the future and those sacrifices can be measured with reliability.
Revenue
Revenue is recognised in the statement of financial performance when a transaction gives rise to an increase in the value of the group’s net assets and that increase can be measured with reliability.
Expenses
An expense is recognised in the statement of financial performance when a transaction results in a decrease in the value of the group’s net assets and that decrease can be measured with reliability.
Classification of Assets and Liabilities Between Current and Non-current
An amount is classified as current when it is expected to be settled or extinguished within one year of the date of the financial statements. All other amounts are classified as non-current.
H. Fixed Assets
Fixed assets are initially stated at cost and then depreciated on a straight line basis. The estimated useful lives of fixed assets are as follows:
| Land | Indefinite |
| Buildings | 30-40 years |
| Furniture and fittings | 3-15 years |
| Office equipment | 3-8 years |
| Motor vehicles | 5-8 years |
I. Investments
Investments are stated at market value and report realised and unrealised gains or losses on holding these investments in the statement of financial performance. These gains or losses are shown in the statement of financial performance as income from revaluation of investments.
J. Accounts Receivable
Accounts receivable are stated at expected realisable value.
K. Grants
Grants are recognised when they are approved by the trustees. Unpaid grants are recorded as a liability.
L. Goods and Services Tax
The group is not registered for goods and services tax. The financial statements are prepared using G.S.T. inclusive accounting.
M. Income Taxation
The group 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 1994.
N. Statement of Cash Flows
Operating cash flows includes interest and dividends paid or credited to investment funds under management and any upward or downward revaluation of funds during the period. Cash movements in funds invested are recognised in investing activities.
O. Changes in Accounting Policies
The accounting policies have been consistently applied by the group and are consistent with those of the previous year.
Notes to the Financial Statements for the Year Ended 31 March 2002
- Investment Income
| 2002 | 2001 | |
|---|---|---|
| $ | $ | |
| Dividends and distributions | 359,710 | 6,729,244 |
| Interest | 5,121,563 | 7,415,270 |
| Change in value of investments | (3,635,361) | (8,869,682) |
| 1,845,912 | 5,274,832 |
- Expenditure
| 2002 | 2001 | |
|---|---|---|
| $ | $ | |
| Audit fees | 14,104 | 5,963 |
| Communications | 21,830 | 25,503 |
| Conference costs | 13,522 | 18,531 |
| Depreciation | 83,496 | 82,848 |
| Loss/(gain) on disposal of fixed assets | (5,725) | (4,121) |
| Fund manager fees | 386,632 | 582,712 |
| General expenses | 41,300 | 45,716 |
| Insurance | 12,131 | 11,019 |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2002, No 131
Gazette.govt.nz —
NZ Gazette 2002, No 131
✨ LLM interpretation of page content
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Consolidated Financial Statements of The Community Trust of Southland
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💰 Finance & RevenueCommunity Trust, Financial Performance, Trust Funds, Financial Position, Southland