NEW ZEALAND GAZETTE

18 JULY

2169

Notes to the Financial Statements for the Year Ended 31 March 2002

1. Statement of Accounting Policies

General Accounting Policies

The following general accounting policies have been adopted in the preparation of the financial statements.

(i) The Community Trust was incorporated as a charitable trust in accordance with the provisions of Community Trusts Act 1999. These financial statements have been prepared in accordance with applicable financial reporting standards.

(ii) Community Trust Charities Limited is a charitable company incorporated under the Companies Act 1993 and is a reporting entity for the purposes of the Financial Reporting Act 1993. The financial reports of Community Trust Charities Limited have been prepared in accordance with the Financial Reporting Act 1993.

(iii) Canterbury Trust House Limited was incorporated on 18 December 1995 under the Companies Act 1993. Canterbury Trust House Limited is a reporting entity for the purposes of the Financial Reporting Act 1993. The financial statements of Canterbury Trust House Limited have been prepared in accordance with the Financial Reporting Act 1993.

(iv) The measurement base adopted is that of historical cost, except for the revaluation of investments. Reliance is placed on the fact that the trust is a going concern.

(v) The matching of revenue earned and expenses incurred using accrual accounting concepts.

Specific Accounting Policies

Depreciation

Depreciation has been charged in the financial statements using rates allowed by the Inland Revenue Department which will write off the cost of assets less their estimated residual value over their estimated economic lives.

The depreciation rates used are:

Fixed Assets and Investment Property

Fixed assets and investment property are recorded at cost less accumulated depreciation.

Investments

Investments are shown at market value. Net income including realised and unrealised gains or losses from holding or trading these investments is recorded in the statement of financial performance.

Donations

Donations are accounted for on a cash basis.

Dividend Income

Dividend income is included in the statement of financial performance when it is received.

Income Tax

Income tax expense is recognised on the surplus available for distribution before taxation, adjusting for differences between taxable and accounting income.

Goods and Services Tax

The subsidiary of Community Trust Charities Limited, Canterbury Trust House Limited, is registered for G.S.T. Accordingly, its financial performance and financial position have been consolidated within the accounts on a G.S.T. exclusive basis.

Subject to the above, the trust is not registered for G.S.T. purposes and therefore, the financial statements have been prepared on a G.S.T. inclusive basis.

Financial Instruments

Foreign currency transactions are translated to New Zealand currency at the exchange rate ruling at the dates of the transactions. Amounts receivable and payable in foreign currencies at balance date are translated at the exchange rate at that date. Exchange differences arising from the translation of amounts payable and receivable in foreign currencies are recognised in the statement of financial performance.

Off-balance sheet financial instruments that are designated as hedges are recognised on the same basis as the underlying hedged item. Off-balance sheet transactions that do not constitute specific hedges are stated at market value and any resultant gain or loss is recognised in the statement of financial performance.

Cash

For the purpose of the statement of cash flows, cash comprises WestpacTrust balances only. Cash excludes bank deposits not used as part of the trust's day-to-day cash management.

Basis of Consolidation

The Community Trust, Community Trust Charities Limited and its subsidiaries, Canterbury Trust House Limited, Amateur Game or Sport Promoter Limited and District Improvement Organisation 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 last year.

2. Revenue and Expenses