20 JULY 2006

NEW ZEALAND GAZETTE, No. 82

2601

The Canterbury Community Trust Notes to the Financial Statements for the Year Ended 31 March 2006

1. Statement of Accounting Policies

General Accounting Policies

The following general accounting policies have been adopted in the preparation of the financial statements.

(i) The Canterbury Community Trust was incorporated as a charitable trust in accordance with the provisions of the Community Trusts Act 1999. These financial statements have been prepared in accordance with applicable financial reporting standards.

(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% d.v.

Furniture and fittings
14-40% d.v.

Computer
28-48% d.v

Fixed Assets

Fixed assets are recorded at cost less accumulated depreciation.

Investments

Where there is a quoted market value for the underlying investment, these are recorded at market value. Where there is no quoted market value then proxy valuations are used based on underlying yields. For certain investments net asset value is used. Where there is no quoted value and a reliable estimate cannot be determined then cost is used. Net income including realised and unrealised gains or losses from holding or trading these investments are 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

For non exempt entities, 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 The Canterbury Community Trust, Canterbury Trust House Limited, is registered for GST. Accordingly, its financial performance and financial position have been consolidated within the accounts on a GST exclusive basis.

Subject to the above, the trust is not registered for GST purposes and therefore the financial statements have been prepared on a GST 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 and its subsidiaries, Community Trust Charities Limited, Canterbury Trust House Limited, Canterbury Direct Investments 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 bases consistent with those used last year.