NEW ZEALAND GAZETTE, No. 110

11 OCTOBER 2007

Change in Accounting Policies on Transition to NZ IFRS

Significant differences identified by The Community Trust of Otago are outlined below. It should not be regarded as
a complete list of changes in accounting policies that will result from the transition to NZ IFRS, as some decisions have not
yet been finalised where choices of accounting policies are available.

The Community Trust of Otago has not yet completed an exercise to quantify the effects of the differences in accounting
policies discussed below, and are therefore currently unable to reliably quantify impacts on the financial statements, which will
arise from transitioning to NZ IFRS. It is possible that the actual impact of adopting NZ IFRS may vary from the information
presented below, and the variation may be material.

Financial Instruments

The Community Trust of Otago’s current accounting policy is to recognise financial instruments at fair value with movements
through the profit and loss account. Under NZ IFRS, the trust will continue to adopt this accounting policy. However, the trust
envisages that further work will be required to ensure that the valuation techniques used to value financial instruments are
consistent with the requirements of NZ IFRS.

It is also noted that financial instruments should be initially measured at fair value. This may result in a remeasurement of the
trust’s loans and receivables.

Audit Report

To the Trustees of The Community Trust of Otago

We have audited the financial report. The financial report provides information about the past financial performance and
financial position of the trust and group as at 31 March 2007. This information is stated in accordance with the accounting
policies.

Trustees’ Responsibilities

The trustees are responsible for the preparation of a financial report which fairly gives a true and fair view of the financial
position of the trust and group as at 31 March 2007, and the results of its operations and cashflows for the year ended on that
date.

Auditors’ Responsibilities

It is our responsibility to express an independent opinion on the financial report presented by the trustees.

Basis of Opinion

An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial report. It also
includes assessing:

• the significant estimates and judgements made by the trustees in the preparation of the financial report; and
• whether the accounting policies are appropriate to the trust’s and group’s circumstances, consistently applied and adequately
  disclosed.

We have conducted our audit in accordance with New Zealand Auditing Standards. We planned and performed our audit so
as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence
to obtain reasonable assurance that the financial report is free from material misstatements, whether caused by fraud or error.
In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial report.

We have performed one consulting assignment for the trust during the year. We have no other relationship with, or interest in,
the trust or any of its subsidiaries other than in our capacity as auditor.

Unqualified Opinion

We have obtained all the information and explanations we have required.

In our opinion, the financial report:

• complies with generally accepted accounting practice in New Zealand; and
• gives a true and fair view of the financial position of the trust and group as at 31 March 2007 and the results of its
  operations and cash flows for the year ended on that date.\n
  Our audit was completed on 26 June 2007 and our unqualified opinion is expressed as at that date.

POLSON HIGGS, Chartered Accountants, Dunedin.

(A summary of donations approved during the financial year ended 31 March 2007 is available on request from the office
of the trust – Freephone 0800 101 240 or email info@cto.org.nz or by writing to the Trust at PO Box 5751, Dunedin.)

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New Zealand Gazette 2007 Deadlines

Labour Day, 22 October 2007

New Zealand Gazette Edition—25 October 2007

Commercial Section Notices: (Companies, Partnership, Insolvency and Land Transfer Acts)

The deadline for these notices will be 12.00 midday on Friday, 19 October 2007, due to the observance of Labour Day on
Monday, 22 October 2007.

All other notices must be lodged at the New Zealand Gazette office by 12.00 midday on Tuesday, 23 October 2007.

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