✨ Financial Statements Notes
16 SEPTEMBER 2004 NEW ZEALAND GAZETTE, No. 121
3023
Notes to the Consolidated Financial Statements for the Year Ended 31 March 2004
1. Statement of Accounting Policies
Reporting Entity
The Community Trust of Mid & South Canterbury Inc. is a charitable trust incorporated under the Trustee Banks Restructuring Act 1988. The financial statements have been prepared in accordance with the Financial Reporting Act 1993 and generally accepted accounting policies.
General Accounting Policies
The general accounting policies adopted in the preparation of these financial statements are:
- 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.
- The matching of revenues earned and expenses incurred using accrual accounting.
Particular Accounting Policies
The following are the particular accounting policies which have a material effect on the measurement of results and financial position:
(a) Dividend Income
Dividend income is included in the consolidated statement of financial performance when it is received.
(b) Donations
Donations, special projects and community loans are accounted for when they are approved for payment.
(c) Investments
Investments held as managed funds are shown at market value. Net income including unrealised gains or losses from holding such investments are recorded in the consolidated statement of financial performance.
(d) Trust Capital
Trust capital is made up of:
(i) Capital fund – which records initial capital fund (being the realised value of trust bank shares).
(ii) Inflation reserve – it is intended to increase the inflation reserve each year by applying the consumer price index to the sum of the initial capital fund and opening inflation reserve. This amount to be allocated from trust profit on an annual basis.
(iii) Uncommitted surplus represents the balance of any profit remaining.
(e) Basis of Consolidation
The Community Trust of Mid & South Canterbury Inc. and its subsidiary the Trust Bank South Canterbury Community Trust Charities Limited have been consolidated using the purchase method of consolidation.
Changes in Accounting Policies
(a) While the trust has not changed its policy with respect to the capital and reserves of the trust, unfortunately prior year financial results depleted the capital and reserves:
(i) Capital fund – The initial capital fund (being the realised value of trust bank shares) was $32,087,148.
(ii) Inflation reserve – It is intended to increase the inflation reserve each year by applying the consumer price index to the sum of the initial capital fund and opening inflation reserve. The nominal inflation reserve required under this policy at 31 March 2004 is $4,892,604 and it is the trustees intention to restore the inflation reserve accordingly.
(b) There have been no other changes in accounting policy.
2. Capital Fund
| 2004 | 2003 | |
|---|---|---|
| Initial capital fund | $31,136,967 | $32,087,148 |
| Transfer from/to general reserves | 950,181 | (950,181) |
| Balance at end of the year | $32,087,148 | $31,136,967 |
3. Inflation Reserve
| 2004 | 2003 | |
|---|---|---|
| Balance at beginning of the year | – | 2,539,687 |
| Transfer from/to general reserves | 3,242,489 | (2,539,687) |
| Balance at end of year | 3,242,489 | – |
4. General Reserves
| 2004 | 2003 | |
|---|---|---|
| Balance at beginning of the year | – | 103,041 |
| Add: Surplus for the year | 4,511,065 | – |
| Transfer from capital | – | 950,181 |
| Transfer from inflation reserve | – | 2,539,687 |
| Add: Donations returned | 23,897 | 26,000 |
| Deduct: Donations approved | (342,292) | (723,410) |
| Deduct: Deficit for the year | – | (2,895,499) |
| Transfer to capital | (950,181) | – |
| Transfer to inflation reserve | (3,242,489) | – |
| Balance at end of the year | – | – |
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2004, No 121
Gazette.govt.nz —
NZ Gazette 2004, No 121
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Notes to the Consolidated Financial Statements for the Year Ended 31 March 2004
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💰 Finance & RevenueAccounting Policies, Financial Statements, Trust Capital, Consolidation, Dividends, Donations, Investments