3440 NEW ZEALAND GAZETTE, No. 131 21 AUGUST 2008

(g) Employee Benefits
Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave when it is probable that settlement will be required and they are capable of being measured reliably.

Provisions made in respect of employee benefits expected to be settled within 12 months are measured at their nominal values using the remuneration rate expected to apply at the time of settlement.

Provisions made in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the consolidated entity in respect of services provided by employees up to reporting date.

(h) Capital
The trust’s capital consists of equity and retained earnings. The trust manages its capital by effectively managing income and expenses, assets and liabilities and investments to ensure it achieves its charitable objectives and purpose. As a part of this process, the trust maintains a minimum reserve fund of $2m invested in NZ Government Bonds.

(i) Grants
Grants are approved for payment if the grant application meets the specified criteria. They are recognised as expenditure when the specified criteria for the grant has been met. Grants which have not met the specified criteria are recognised as contingent liabilities.

(j) Critical Accounting Estimates, Assumptions and Judgements
The preparation of financial statements in conformity with NZ IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the trust’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in the relevant accounting policy or in the relevant note.

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

The 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The trust has exercised judgement in determining the categorisation of financial assets and liabilities and the recognition of grants payable. The categories and measurement of these items are disclosed in paragraph (c) and the carrying values in Note 5. The criteria used to determine whether or not a grant is a payable or contingent liability is disclosed in paragraph (i). Grants payable are included within trade and other payables in the balance sheet. The carrying value of grants payable at 31 March 2008 was $573,300 (2007 – $827,393) and the value of contingent liabilities in relation to grants has been disclosed in Note 12.

2. Interest

3. Cash at Bank

4. Trade and Other Receivables

5. Investments

Current—
Loans and receivables carried at amortised cost:
TSB Bank Limited term deposits: 65,000 (2008) | – (2007)

Held-to-maturity investments carried at amortised cost:
NZ Government Bonds: 1,999,811 (2008) | – (2007)

Non current—
Investments carried at cost:
Shares in TSB Bank Limited: 10,000,000 (2008) | 10,000,000 (2007)