New Zealand Gazette – 2003 – No. 89

Page 2308

✨ Bay of Plenty Community Trust Annual Report



2308 NEW ZEALAND GAZETTE No. 89

(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.

| | 2003
$(000) | 2002
$(000) |
|----------------|-----------------|-----------------|

  1. Equity

Trust capital— 89,308 89,308

General funds:

Trust Company 2003 2002
Opening balance (9,790) 9,790 — —
Less donations from trust capital (97) — (97) (251)
Plus transfer from current year surplus (5,241) 5,338 97 251
(15,128) 15,128 — —

Income fluctuation reserve:

2003 2002
Opening balance 11,835 12,840
Increase/(decrease) in reserve (8,419) (1,005)
3,416 11,835

Regional facilities reserve:

2003 2002
Opening balance — 926
Increase/(decrease) in reserve — (926)

Inflation and population reserve:

2003 2002
Opening balance 13,542 13,480
Increase in reserve — 62
13,542 13,542

Total equity 106,266 114,685

  1. Fixed Assets

Office furniture and equipment:

2003 2002
Cost 79 73
Accumulated depreciation 54 47
Book value 25 26
  1. Financial Instruments

Investments are stated at market value as at balance date. Accrued interest, accounts payable and donations approved not yet paid are stated at the amounts expected to be received or paid. Accordingly, the trustees consider that the fair value of each class of financial assets and financial liabilities is the same as the carrying value in the financial position.

Concentration of Investments

Ninety-nine point nine percent (99.9%) of the assets of the trust are represented by investments held with a range of financial institutions. However, the trustees consider the risk of non-recovery of these investments to be minimal. Maximum exposure to credit risk as at balance date is:

2003 2002
Bank balances 80 3
Bank term deposits 90 33
Accounts receivable — 3
Investments 106,261 115,217

Currency Risk

The trust incurs currency risk as a result of investment transactions entered into by fund managers. The trust has a policy of fully hedging global bonds and fifty percent (50%) hedging of global equities.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2003, No 89


Gazette.govt.nz — PDF NZ Gazette 2003, No 89




✨ LLM interpretation of page content

🏢 Bay of Plenty Community Trust Annual Report (continued from previous page)

🏢 State Enterprises & Insurance
24 June 2003
Community Trust, Financial Statements, Equity Movements, Financial Position