✨ Financial Statements
2194 NEW ZEALAND GAZETTE, No. 84 26 JULY 2007
relation to all financial instruments are recognised in the statement of financial performance. Financial instruments are shown at their fair values.
Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years.
| 2007 | 2006 | |
|---|---|---|
| $000 | $000 |
2. Equity
Trust capital—
89,308 89,308
General fund:
Opening balance
– –
Net surplus/(deficit)
8,177 268
Less grants from capital
(162) (268)
Less transfer to income fluctuation reserve
(3,030) –
Less transfer to inflation and population growth reserve
(4,985) –
Closing balance
– –
Income fluctuation reserve:
Opening balance
23,919 14,885
Increase in reserve
3,030 9,034
26,949 23,919
Inflation and population growth reserve:
Opening balance
22,713 19,136
Increase in reserve
4,985 3,577
27,698 22,713
Total equity
143,955 135,940
| 2007 | 2006 | |
|---|---|---|
| $000 | $000 |
3. Fixed Assets
Office furniture and equipment:
Cost
116 107
Less Accumulated depreciation
(61) (49)
Book value
55 58
4. Financial Instruments
Investments managed by financial institutions are stated at market value as at balance date. Accrued interest, accounts payable and grants approved not yet paid are stated at the amounts expected to be received or paid. Accordingly, the trustees consider that the fair value of each class of financial assets and financial liabilities is the same as the carrying value in the financial position.
Concentration of Investments
Ninety-eight point nine percent (98.9%) of the assets of the trust are represented by investments held with a range of financial institutions (2006 – 98.5%). However, the trustees consider the risk of non-recovery of these investments to be minimal.
Maximum exposure to credit risk as at balance date is:
| 2007 | 2006 | |
|---|---|---|
| $000 | $000 |
Bank balances
37 14
Bank term deposits
729 664
Accounts receivable
0 4
Interest free loans
699 987
Investments
142,717 135,527
Currency Risk
The trust incurs currency risk as a result of investment transactions entered into by fund managers. The trust has a policy of fully hedging global bonds and global equities.
Interest Rate Risk
The investments of the trust are sensitive to changes in interest rates: Bank call accounts and deposits, government and local authority securities, and securities held by fund managers.
Fair Value
The carrying value is considered to be the fair value for financial instruments.
5. Investments
The value of investments which are held in equities, fixed interest, property and hedge funds are subject to market fluctuations. The total investment portfolio is diversified in such a way that over time, reductions in value in particular asset classes should be more than offset by increases in other classes. Investments are disclosed at market value at balance date and any gains (losses) arising from that treatment are shown as "investment gains (losses)" in the statement of financial performance.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2007, No 84
Gazette.govt.nz —
NZ Gazette 2007, No 84
✨ LLM interpretation of page content
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Bay of Plenty Community Trust Incorporated Annual Report for the Year Ended 31 March 2007
(continued from previous page)
🏛️ Governance & Central Administration26 June 2007
Community Trust, Financial Statements, Equity, Grants, Investments