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NEW ZEALAND GAZETTE, No. 84

26 JULY 2007

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.

Joint Ventures
When a member of the group participates in a joint venture arrangement, that member recognises its proportionate interest in the individual assets, liabilities and expenses of the joint venture. The liabilities recognised include its share of those for which it is jointly liable.

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 a basis consistent with those used last year.

2. Revenue and Expenses

| Investment fees: | | |
| Fund managers’ fees | 700,968 | 656,857 |
| Custodial fees | 155,253 | 141,160 |
| Advisory fees | 255,430 | 153,238 |
| Total Fees | 1,111,651 | 951,255 |

| Expenses: | | |
| Advertising, public relations, distribution and other costs | 236,366 | 226,602 |
| Audit fees | 24,000 | 22,325 |
| Computer costs | 31,162 | 25,111 |
| Depreciation, loss on sale and depreciation recovered | 85,363 | 91,490 |
| Professional fees | 55,452 | 100,907 |
| Property costs | 153,055 | 173,061 |
| Salaries and staff recruiting fees | 320,641 | 311,231 |
| Trustees’ fees | 129,718 | 126,541 |
| Total Expenses | 1,035,757 | 1,077,268 |

3. Donations
The names of organisations to whom distributions have been made by the trust under section 13 of the Community Trusts Act 1999 during the financial year and the amounts distributed are shown in the annual report.

Funds carried forward as accumulated income are available for the payment of donations in future years. Budgeted donations unspent in the current year are to be distributed in the following year.

Future donation commitments represent donations approved in the current or previous years which are to be distributed from either capital or future income sources.