✨ Community Trust Financial Report
26 JULY 2007
NEW ZEALAND GAZETTE, No. 84
2195
performance. Therefore, no provision has been made for potential gains or losses that could occur due to future market
fluctuations. The investment portfolio as at 31 March 2007 is diversified as follows:
| Tower Asset Management | SSGA | AMP Capital Investors | Russell Investment Group | Total |
|---|---|---|---|---|
| $000 | $000 | $000 | $000 | $000 |
| New Zealand equities | 7,973 | 0 | 0 | 0 |
| Collateralised commodity futures | 0 | 7,406 | 0 | 0 |
| New Zealand cash | 143 | 0 | 3,149 | 0 |
| Global bonds (fully hedged) | 0 | 0 | 28,502 | 27,871 |
| Global equities (fully hedged) | 33 | 0 | 6,174 | 45,099 |
| Global property | 0 | 0 | 0 | 9,132 |
| Hedge fund of funds | 0 | 0 | 0 | 7,235 |
| Total 2007 | 8,149 | 7,406 | 37,825 | 89,337 |
| Total 2006 | 44,802 | 0 | 36,035 | 54,690 |
The balance date figures above are reflected in the trust’s asset allocations:
| 2007 | 2006 | |||
|---|---|---|---|---|
| Policy (%) | Actual (%) | Policy (%) | Actual (%) | |
| New Zealand equities | 5 | 6 | 5 | 5 |
| New Zealand bonds | 0 | 0 | 25 | 23 |
| Collateralised commodity futures | 5 | 5 | 0 | 0 |
| New Zealand cash | 5 | 3 | 5 | 6 |
| Global bonds (fully hedged) | 40 | 39 | 25 | 26 |
| Global equities (fully hedged) | 35 | 36 | 30 | 30 |
| Global property | 5 | 6 | 5 | 5 |
| Hedge fund of funds | 5 | 5 | 5 | 5 |
| 100 | 100 | 100 | 100 |
- Taxation
Bay of Plenty Community Trust is exempt from income tax with effect from 1 April 2004, under section CW 44 of the Income Tax Act 2004.
- Goods and Services Tax
The trust is not registered for goods and services tax purposes. Accordingly, these financial statements are stated on a GST inclusive basis.
- Related Party Transactions
There were no related party transactions during the year.
- Adoption of International Financial Reporting Standards (NZ IFRS)
In December 2002, the New Zealand Accounting Standards Review Board announced that International Reporting Standards (NZ IFRS) will apply to all New Zealand entities for periods beginning on or after 1 January 2007. Entities also have the option of a voluntary early adoption of NZ IFRS for periods beginning on or after 1 January 2005.
The Bay of Plenty Community Trust intends to implement NZ IFRS in its annual financial statements for the year ending 31 March 2008.
Transition Management
The Bay of Plenty Community Trust has started a project to:
- assess the key differences in accounting policies under NZ IFRS and current accounting policies;
- determine the impacts on the financial statements from transition; and
- determine and to implement processes to deal with any related business impacts.
Change in Accounting Policies on Transition to NZ IFRS
Significant differences identified by The Bay of Plenty Community Trust 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 Bay of Plenty Community Trust 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 Bay of Plenty Community Trust 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 re-measurement of the trust’s loans and receivables.
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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
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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