✨ Financial Statements and Related Information
16 AUGUST 2007 NEW ZEALAND GAZETTE, No. 91
2413
9. Related Party Information
During the 2005/2006 financial year, joint expenses were charged to this trust by ASB Charitable Trust.
The following companies were established by the trust:
| Name | Interest Held | Balance Date | Principal Activity |
|---|---|---|---|
| ASB Trusts Amateur Public Sports Promotion Limited | 100% | 31 March | Grants to amateur sport bodies |
| ASB Trusts Public Amenities Development Limited | 100% | 31 March | Grants to public beautification bodies |
These subsidiaries were incorporated on 29 March 2001. They have not traded since incorporation.
10. Financial Instruments
Currency Risk
The trust invests in securities that are denominated in foreign currencies and therefore result in a currency risk. In order to minimise the currency risk, foreign currency assets are hedged.
| 2007 $000 | 2006 $000 | |
|---|---|---|
| Foreign currency denominated assets | 680,576 | 373,212 |
| Less foreign currency contracts | 680,576 | 270,760 |
ASB Charitable Trust currency risks assumed on distribution:
| 2007 $000 | 2006 $000 | |
|---|---|---|
| Foreign currency denominated assets | – | 340,651 |
| Less foreign currency contracts | – | 246,165 |
| Total unhedged exposure at 31 March | – | 196,938 |
Interest Rate Risk
The trust, through its fund managers, invests in securities that are subject to interest rate risk. The trust actively monitors this risk and changes asset allocations and maturity profiles accordingly.
Credit Risk
The trust, in the normal course of business, enters into arrangements with other parties. These arrangements give rise to credit risk for the trust and hence policies and procedures are maintained so that this risk is minimised.
For all classes of financial assets held by the trust, the maximum credit risk exposure to the trust is the carrying value. Due to the diversification of the investment portfolio and the policies and procedures in place, there are no significant concentrations of credit risk. No collateral is required in respect of financial assets.
Fair Values
All financial instruments are carried at market value, which equates to fair value.
11. Foreign Currency Monetary Assets
As at 31 March 2007, the trust had fully hedged its foreign currency exposure. At 31 March 2006, the trust had the following foreign currency monetary assets (including assets received on distribution from the ASB Charitable Trust) that were not hedged.
| 2007 $000 | 2006 $000 | |
|---|---|---|
| Receivables stated in NZ$ equivalents: | ||
| USA and Canada | – | 113,632 |
| UK and Continental Europe | – | 60,263 |
| Japan and Far East | – | 23,043 |
| Total foreign currency exposure at 31 March | – | 196,938 |
12. Reconciliation of Reported Surplus to Net Cash Flow From Operating Activities
| 2007 $000 | 2006 $000 | |
|---|---|---|
| Reported surplus | 86,446 | 91,672 |
| Add Non-cash items: | ||
| Depreciation | 95 | – |
| Movements in working capital items: | ||
| Decrease in creditors | 242 | (41) |
| Decrease/(increase) in debtors | (353) | – |
| Increase in ASB Charitable Trust | – | 324 |
| (111) | 283 | |
| Fund managers’ income reinvested | (89,060) | (93,210) |
| Net cash outflow from operating activities | (2,630) | (1,255) |
13. Non Cash Flow Items
The inter-trust current account with the ASB Charitable Trust was settled by way of set off on the distribution of the charitable trust’s capital fund by way of distribution on 31 March 2006.
14. Capital Commitments and Contingent Liabilities
Other than committed grants, the trust has no other capital commitments or contingent liabilities.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2007, No 91
Gazette.govt.nz —
NZ Gazette 2007, No 91
✨ LLM interpretation of page content
💰 Related Party Information
💰 Finance & RevenueJoint expenses, Subsidiaries, Grants, ASB Charitable Trust
💰 Financial Instruments
💰 Finance & RevenueCurrency risk, Interest rate risk, Credit risk, Fair values, Hedging
💰 Foreign Currency Monetary Assets
💰 Finance & RevenueForeign currency exposure, Hedging, Receivables
💰 Reconciliation of Reported Surplus to Net Cash Flow From Operating Activities
💰 Finance & RevenueReported surplus, Non-cash items, Working capital, Fund managers’ income
💰 Non Cash Flow Items
💰 Finance & RevenueInter-trust current account, Capital fund distribution
💰 Capital Commitments and Contingent Liabilities
💰 Finance & RevenueCommitted grants, Contingent liabilities