21 JULY 2005

NEW ZEALAND GAZETTE, No. 110

2671

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.

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 Westpac balances only. Cash excludes bank deposits not used as part of the trust’s day-to-day cash management.

Basis of Consolidation

The Canterbury 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 basis consistent with those used last year.

2. Revenue and Expenses

| Investment fees: | | |
| Fund managers’ fees | 862,945 | 811,649 |
| Custodial fees | 149,609 | 193,608 |
| Advisory fees | 145,596 | 170,198 |
| | 1,158,150 | 1,175,455 |

| Expenses: | | |
| Advertising, public relations, distribution and other costs | 233,471 | 236,525 |
| Computer and system review costs | 26,987 | 27,453 |
| Depreciation, loss on sale and depreciation recovered | 100,939 | 295,180 |
| Professional fees | 102,254 | 97,335 |
| Property costs | 153,232 | 138,313 |
| Salaries and staff recruiting fees | 286,688 | 253,817 |
| Trustees’ fees | 123,193 | 131,583 |
| | 1,026,764 | 1,180,206 |

Investment income includes a one-off write down in the value of the investment held in CSA Absolute Return Fund Limited (in liquidation). Trustees, on advice from the liquidator, have written the investment down to the current estimated realisable value, resulting in an adjustment of $674,262. The current estimated realisable value is 75% of the asset value, although over time a full recovery is anticipated.