3824 NEW ZEALAND GAZETTE, No. 154 8 SEPTEMBER 2005

Shares and Investments

Shares and other investments are stated at the market value. Changes in the market value of investments are taken to the statement of financial performance.

Goods and Services Tax

The financial statements have been prepared using a G.S.T. exclusive figures to the extent that G.S.T. is claimable.

Financial Instruments

All financial instruments held by the trust are recorded in the statement of financial position. The financial instruments comprise equity securities, discounted securities, secured investments, borrowings, deposits and cash. Concentrations of credit risk arise as a result of holding equity securities as investments. These are subject to the normal market risk associated with investments of this nature. There are no significant differences between the fair value and book value of financial instruments. Where possible, financial assets and liabilities are supported by collateral or other security. These arrangements are described in the individual policy statements associated with each item.

Cash and Cash Equivalents

For the purposes of the statement of cash flows, cash comprises cash balances (net of bank overdrafts) and demand deposits. Cash excludes treasury bills that are not used as part of the group’s day-to-day cash management.

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.

2. Nature of Business

The Community Trust of Wellington was incorporated as a charitable trust in accordance with the provisions of the Trustee Banks Restructuring Act 1988 and now superseded by the Community Trust Act 1999. The purpose of the community trust is to provide charitable, cultural, philanthropic and recreational benefits to the community, principally in the trust region. The nature of business of the wholly-owned company, Wellington Community Trust Charities Limited, is restricted by their constitution to providing charitable benefits to the community, principally in the region of The Community Trust of Wellington. The company was placed into voluntary liquidation on 31 March 2005. From 1 April 2005, all operating activities will be undertaken by the trust. The Community Trust of Wellington and its subsidiary company operate under the trading name "The Community Trust of Wellington".

3. Taxation

The Community Trust of Wellington is exempt from income tax under section CB4 (1) (m) of the Income Tax Act 1994. For taxation purposes, Wellington Community Trust Charities Limited is deemed to be a charitable organisation and on this basis the income is not subject to taxation. The company’s charitable status was confirmed on 27 August 1997 by the Inland Revenue Department.

4. Property, Plant & Equipment

5. Investments (Current)

Secured Investments:

On 30 June 1998, The Embassy Theatre Trust entered in a 5th mortgage agreement with Wellington Community Trust Charities Limited. The mortgage was repayable over 10 years and is secured over the property owned by The Embassy Theatre Trust. The mortgage was repaid in full during the year.

Total current investments