2410 NEW ZEALAND GAZETTE, No. 91 16 AUGUST 2007

Consolidated Financial Statements

Consolidated financial statements have not been prepared as the subsidiary companies have not traded since incorporation.

Statement of Cash Flows

Cash comprises cash at bank and call deposits but does not include cash or deposits held by the fund managers. Therefore, the statement of cash flows does not reflect the cash flows within the fund managers’ portfolios.

Dividends, Pooled Funds and Interest

Dividends are recognised as income on declaration date, and are recorded net of any imputation tax credits. Income from pooled funds is recognised on declaration date. Interest is recognised as income on an accrual basis.

Grants

Grants are accounted for as they are committed to be distributed to eligible organisations as approved by the trustees.

Expenses

Prior to 31 March 2006, some expenses were shared jointly between the ASB Community Trust and the ASB Charitable Trust. Whilst each trust bore its own specific costs, the joint expenses were allocated between each trust on the basis of the number of applications processed by each.

Joint expense allocations were:

Fixed Assets

Fixed assets are valued at cost, less accumulated depreciation.

Depreciation

Depreciation is provided over the useful life of the assets. Buildings are depreciated on a straight line basis. Vehicle, office equipment and furniture are depreciated on a diminishing value basis. The rates used are those recommended by the Inland Revenue Department.

| Land and buildings | 2.5% – 3.0% |
| Office equipment and furniture | 9.5% – 60.0% |

Foreign Currencies

All amounts denominated in foreign currencies are converted to New Zealand dollars at balance date and all realised and unrealised gains and losses are recognised in income and expenditure for the period.

Investments

Investment in managed funds and other investments are stated at market value. Any gains or losses are recognised in income and expenditure for the period. Investment transactions are recorded by the fund managers on a settlement date basis.

Financial Instruments

All assets and liabilities of the trust are financial instruments and are recognised in the statement of financial position. All financial instruments are recorded at market value which equates to fair value.

The trust uses financial instruments to reduce exposure to fluctuations in foreign currency exchange rates. Forward exchange contracts are entered into to hedge foreign currency transactions. These are converted to the New Zealand dollar rate at balance date with all realised and unrealised gains and losses being recognised in the income and expenditure statement.

The quantitative disclosures required by FRS 31 Disclosure of Information about Financial Instruments have been included throughout the financial statements where material.

Reserves

Transfers to the capital maintenance reserve are based on the annual movement in the consumer price index. Transfers to all other reserves from the unallocated surplus are made at the discretion of the trustees.

Taxation

The Income Tax Act 1994 provides exemption from income tax for community trusts established under the Trustee Banks Restructuring Act 1988. The amendment applied from the 2005 income year, and consequently no taxation has been provided for in these financial statements.

Changes in Accounting Policies

There have been no material changes in accounting policies during the period.

2. Income