New Zealand Gazette – 2006 – No. 57

Page 1437

✨ Financial Statements and Accounting Policies



15 JUNE 2006

NEW ZEALAND GAZETTE, No. 57

1437

1.3.2 Foreign Currency

Foreign currency balances are converted to NZD at the year end rate of exchange unless covered by a forward exchange contract. Where such contracts are in place, the contracted rate is adopted. Transactions completed during the year are converted at the rate applying at the approximate date of the transaction. Foreign exchange gains and losses are included within the statement of financial performance.

1.3.3 Investments

Investments are recorded at market value at year-end.

1.3.4 Cash

Cash comprises cash at bank, call deposits and short-term deposits but does not include cash held by fund managers. Cash flows from operations include withdrawals of income from managed funds.

1.3.5 Donations

Donations are recognised as a liability of the trust when they are approved by trustees and notified to applicants notwithstanding that the applicants may still have to fulfil some conditions.

1.3.6 Fixed Assets

Fixed assets are recorded at cost less accumulated depreciation.

1.3.7 Depreciation

Depreciation is provided on a straight line basis on all tangible fixed assets at rates calculated to allocate the assets’ cost less estimated residual value over their estimated useful lives.

The depreciation periods are:

Asset Type Depreciation Period
Computer equipment three years
Furniture ten years
Office equipment five years

1.3.8 GST

GST inclusive accounting has been adopted, as the trust is not registered for GST.

1.4 Changes in Accounting Policies

There have been no changes in accounting policies. All policies have been consistently applied.

2. Income From Investments

2006 2005
Realised income
Dividend income 6,113,250 6,075,995
Interest income 488,637 559,821
Gain on disposal of investments 649,643 1,689,610
7,251,530 8,325,426
Unrealised income
Foreign exchange gains/(losses) 9,329,664 (1,367,226)
Revaluation of investments 11,066,554 2,030,598
20,396,218 663,372
Total income from investments 27,647,748 8,988,798
Less fund managers’ fees 159,932 87,383
Total net income from investments 27,487,816 8,901,415

3. Taxation

The trust is exempt from income tax as provided in the Income Tax Act 2004.

4. Trust Capital

The initial trust capital was set at $90 million in 1997. The trust capital has been increased over time as a surrogate for inflation and population growth within the region administered by the trust. The trustees periodically review the capital maintenance transfer and this year the trustees have determined to increase the capital by $2.4 million. Previous transfers have exceeded inflation and population increases.

2006 2005
Balance at the beginning of the year 106,734,668 105,534,667
Allocation of surplus to capital maintenance 2,400,000 1,200,000
Balance at the end of the year 109,134,668 106,734,667

5. Donation Reserve

The trustees retain all undistributed income in the donation reserve.

2006 2005
Balance at the beginning of the year 11,808,891 9,624,633
Transfer from income 24,205,398 6,768,978
36,014,289 16,393,611
Less donations 4,534,900 4,584,720
Balance at the end of the year 31,479,389 11,808,891


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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2006, No 57


Gazette.govt.nz — PDF NZ Gazette 2006, No 57




✨ LLM interpretation of page content

💰 Notes to the Financial Statements for the Year Ended 31 March 2006 (continued from previous page)

💰 Finance & Revenue
Accounting Policies, Financial Statements, Investments, Depreciation, GST

💰 Income From Investments

💰 Finance & Revenue
Income, Investments, Dividends, Interest, Foreign Exchange

💰 Taxation

💰 Finance & Revenue
Tax Exemption, Income Tax Act 2004

💰 Trust Capital

💰 Finance & Revenue
Trust Capital, Capital Maintenance, Inflation, Population Growth

💰 Donation Reserve

💰 Finance & Revenue
Donations, Donation Reserve, Income