8 JULY 2004 NEW ZEALAND GAZETTE, No. 85 2145

(ii) 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.

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:

Buildings 3% c.p.
Office equipment 6-60% c.p.
Furniture and fittings 14-40% d.v.
Computer 28-48% d.v.

Fixed Assets

Fixed assets 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.
Investment properties are stated at open market value less estimated costs of disposal as determined by independent valuers at
balance date. Unrealised changes in the value of investment properties are included in revenue. Investment properties are not
depreciated.

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.\n
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 except the accounting for investment properties from which the trust is
deriving rental income. From 31 March 2004 these properties, which were previously recorded at cost less accumulated
depreciation, have been valued at market value. The effect of this change is an increase in revenue of $401,630 and is included
in the statement of financial performance. All other policies have been applied on bases consistent with those used last year.

2. Revenue and Expenses