New Zealand Gazette – 2007 – No. 77

Page 2015

✨ Financial Statements



5 JULY 2007 NEW ZEALAND GAZETTE, No. 77 2015

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:
Computer equipment three years
Furniture ten years
Office equipment five years

1.3.8

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

2007 2006
Realised income $ $
Dividend income 6,262,381 6,113,250
Interest income 618,196 488,637
Gain on disposal of investments 1,249,618 649,643
8,130,195 7,251,530

| Unrealised income | | |
| Foreign exchange gains/(losses) | (11,144,071)| 9,329,664 |
| Revaluation of investments | 11,862,170 | 11,066,554 |
| | 718,099 | 20,396,218 |

| Total income from investments | 8,848,294 | 27,647,748 |
| Less fund managers’ fees | 171,720 | 159,932 |
| Total net income from investments | 8,676,574 | 27,487,816 |

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 $4.8 million. Previous transfers have exceeded
inflation and population increases.

2007 2006
Balance at the beginning of the year 109,134,668 106,734,668
Allocation of surplus to capital maintenance 4,800,000 2,400,000
Balance at the end of the year 113,934,668 109,134,668

5. Donation Reserve

The trustees retain all undistributed income in the donation reserve.

2007 2006
Balance at the beginning of the year 31,479,389 11,808,891
Transfer from income 2,979,582 24,205,398
34,458,971 36,014,289
Less donations 4,510,341 4,534,900
Balance at the end of the year 29,948,630 31,479,389


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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2007, No 77


Gazette.govt.nz — PDF NZ Gazette 2007, No 77




✨ LLM interpretation of page content

💰 Notes to the Financial Statements for the Year Ended 31 March 2007 (continued from previous page)

💰 Finance & Revenue
Accounting Policies, Reporting Entity, Measurement Base, Investment Income, Foreign Currency