New Zealand Gazette – 2003 – No. 89

Page 2313

✨ Financial Statements



31 JULY NEW ZEALAND GAZETTE 2313

1.3.7 Fixed Assets

Fixed assets are recorded at cost less accumulated depreciation.

1.3.8

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 three years
Fixtures and fittings nine years
Furniture ten years
Office equipment five years

1.3.9

Income tax expense recognises the obligation payable to the Inland Revenue Department.

1.3.10

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

1.4 Changes in Accounting Policies

There have been no changes in accounting policies. All policies have been consistently applied.

2. Income From Investments

2003 2002
$ $
Income from managed funds (11,811,179) (2,242,298)
Less fund managers’ expenses 166,940 276,290
(11,978,119) (2,518,588)
Plus interest 602,054 739,176
(11,376,065) (1,779,412)

3. Taxation

2003 2002
$ $
Net surplus/(deficit) before taxation (12,182,808) (2,629,604)
Less non-deductible expenditure 404,653 424,526
non-assessable income 14,352,454 6,220,434
Gross assessable income 2,574,301 4,015,356
Beneficiary distributions of assessable income 2,574,301 4,015,356
Taxable income – –
Taxation @ 33% – –
Taxation (as agent) relation to prior years – 193,770
Taxation expense – 193,770

In the previous year, the trustees made provision of $193,770 for the likely tax payable on behalf of the beneficiaries in settlement with the Inland Revenue Department. No tax is payable this year as all applicants have presented an Inland Revenue letter of exemption from income tax.

4. Trust Capital

The initial trust capital was set at $90,000,000 in 1997. The trust capital has been increased by a transfer of 3% of the opening capital base each year, as a surrogate for inflation and population growth within the region administered by the trust. The trustees periodically review the capital maintenance transfer and this year the trustees have determined not to increase the capital as previous transfers have exceeded inflation and population increases.

2003 2002
$ $
Balance at the beginning of the year 104,334,667 101,295,793
Transfer from income – 3,038,874
Balance at the end of the year 104,334,667 104,334,667

5. Donation Reserve

The trustees retain all undistributed income in the donation reserve.

2003 2002
$ $
Balance at the beginning of the year 17,506,125 30,392,315
Transfer from income (12,182,808) (5,862,248)
5,323,317 24,530,067
Less donations 4,225,556 7,023,942
Balance at the end of the year 1,097,761 17,506,125

6. Investments in Managed Funds

2003 2002
$ $
Opening balance 113,790,289 120,269,549
Gross income (11,811,179) (2,242,297)
Withdrawals to fund donations (net) (2,610,004) (4,236,963)
Closing balance 99,369,106 113,790,289


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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

🏢 Eastern & Central Community Trust Incorporated Financial Statements (continued from previous page)

🏢 State Enterprises & Insurance
16 July 2003
Financial Performance, Movements in Equity, Financial Position, Income, Expenditure, Assets, Liabilities, Donations