14 AUGUST 2008 NEW ZEALAND GAZETTE, No. 127 3317

Cashflows from investment activities:
Acquisition of property, plant and equipment 8 (15) (15)
Disposal of investments 16,907 34,000
Acquisition of investments (13,357) (34,567)
Net cash from/used in investing activities 3,535 (582)
Net (decrease)/increase in cash and cash equivalents 980 23
Cash and cash equivalents at 1 April 37 14
Cash and cash equivalents at 31 March 1,017 37

Notes to the Financial Statements in New Zealand Dollars
Significant Accounting Policies

1 Reporting Entity
The Bay of Plenty Community Trust is a charitable trust, domiciled in New Zealand, incorporated in accordance with the provisions of The Community Trusts Act 1999. The trust is a public benefit entity.

The Bay of Plenty Community Trust is a charitable trust which distributes income from its investment activities to the Bay of Plenty communities.

2 Basis of Preparation

(a) Statement of Compliance
The financial statements have been prepared in accordance with the requirements of the Financial Reporting Act 1993 and Generally Accepted Accounting Practice in New Zealand (NZ GAAP). They comply with New Zealand equivalents to International Financial Reporting Standards, and its interpretations (NZ IFRS) and other applicable Financial Reporting Standards, as appropriate for public benefit entities. Compliance with NZ IFRS ensures that the financial statements comply with International Financial Reporting (“IFRS”). These are the trust’s first financial statements and NZ IFRS 1 has been applied.

An explanation of how the transition to NZ IFRS has affected the reported financial position, financial performance and cash flows of the trust is provided in note 18. A description and the impact of changes in accounting policies are also described in note 18.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements and in preparing an opening NZ IFRS balance sheet at 1 April 2006 for the purposes of the transition to NZ IFRS.

The financial statements have been approved by the board of trustees on 7 July 2008.

(b) Basis of Measurement
The financial statements have been prepared on the historical cost basis except for the following:

• Derivative financial instruments are measured at fair value.
• Financial instruments at fair value through profit or loss are measured at fair value.

The methods used to measure fair values are discussed further in note 4.

(c) Functional and Presentation Currency
These financial statements are presented in thousands of New Zealand dollars ($000s). All financial information presented in New Zealand dollars has been rounded to the nearest thousand.

(d) Use of Estimates and Judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are relate to the valuation of investments are discussed further in note 4.

3 Significant Accounting Policies

(a) Foreign Currency
Foreign currency transactions

Foreign currency transactions are translated to the respective functional currencies of trust entities at exchange rates at the date of transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date.

(b) Financial Instruments

(i) Non-derivative financial instruments

Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, and trade and other payables.

Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value derivative financial instruments are measured as described below.

Cash and cash equivalents comprise cash balances and call deposits.

Instruments at fair value through profit or loss

An instrument is classified as at fair value through profit or loss if it held for trading or is designated as such upon initial recognition. Financial instruments are designated at fair value through profit or loss if the trust manages such investments and makes purchase and sale decisions based on their fair value. Upon initial recognition, attributable