24 AUGUST 2006

NEW ZEALAND GAZETTE, No. 100

2987

The balance date figures above are reflected in the trust’s asset allocations:

6. Taxation

Bay of Plenty Community Trust is exempt from income tax with effect from 1 April 2004, under section CW 44 of the Income Tax Act 2004.

7. Goods and Services Tax

The trust is not registered for goods and services tax purposes. Accordingly, these financial statements are stated on a GST inclusive basis.

8. Related Party Transactions

Bay of Plenty Community Trust Charities Limited (the company) was wholly owned by Bay of Plenty Community Trust Incorporated (the trust). No related party debts have been written off or forgiven during the year. The company was wound up during the year and assets were distributed to the trust.

9. Adoption of International Financial Reporting Standards (NZ IFRS)

In December 2002, the New Zealand Accounting Standards Review Board announced that International Reporting Standards (NZ IFRS) will apply to all New Zealand entities for periods beginning on or after 1 January 2007. Entities also have the option of a voluntary early adoption of NZ IFRS for periods beginning on or after 1 January 2005.

While NZ IFRS are similar to New Zealand Financial Reporting Standards, there are a number of significant differences mainly in the areas of accounting for financial instruments, leases, financial liabilities and taxation. These differences may affect the results of Bay of Plenty Community Trust upon adoption of NZ IFRS.

A project team will be established to identify the financial implications, disclosures, presentation or classification differences that would impact the manner in which transactions or events are recorded and reported. At this time, the trustees are not able to quantify the effects of the differences discussed above.

Bay of Plenty Community Trust currently intends to adopt NZ IFRS for the year ending 31 March 2008. To comply with NZ IFRS for the first time, the trust will need to restate the comparative balances applying the new standards. This will affect the earnings and cash flow statement and the statement of financial position. Most adjustments required on transition to NZ IFRS will be made retrospectively to equity. The actual impact of adopting NZ IFRS may vary from the information presented, and that variation may be material.

10. Segment Information

The trust’s activity is to receive income to allocate for charitable, cultural, philanthropic, recreational and other purposes beneficial to the community, principally in the Bay of Plenty area.

11. Contingent Liabilities

The following future donations have been approved but are subject in each case to the applicants satisfying particular criteria specific to each recipient.

12. Commitments

Capital commitments:

There are no capital commitments (2005 – Nil).

Lease commitments:

Lease commitments under non-cancellable operating leases:

Less than one year $45,082

(2005 – $7,000).

13. Investment Income and Advisory Fees

An investment fee is charged by Russell Investment Group before distributions are made from a Russell unit trust. In previous years, the investment fee has not been disclosed separately in the statement of financial performance. In 2006, the investment