✨ Financial Statements
21 AUGUST 2008 NEW ZEALAND GAZETTE, No. 131 3443
Fair Value
The estimated fair values of financial instruments that differ from carrying values are as follows:
| Carrying Amount 2008 | Fair Value 2008 | Carrying Amount 2007 | Fair Value 2007 | |
|---|---|---|---|---|
| $ | $ | $ | $ | |
| NZ Government Bonds | 1,999,811 | 2,023,000 | – | – |
The fair value has been determined as the amount payable on maturity.
The carrying values for cash and cash equivalents and loans and receivables are their fair values.
It is not practicable to estimate the fair value of the shares in the TSB Bank Limited. Their fair value cannot be reliably measured as the market for such shares is unknown. The trust intends to hold the shares for the long term.
12. Contingent Liabilities
| 2008 | 2007 | |
|---|---|---|
| $ | $ | |
| Grants approved but the distribution is subject to the donees’ meeting certain conditions | 1,282,700 | 1,745,200 |
13. Capital Commitments
The company has no material capital commitments at balance date (2007 – $Nil).
14. Subsequent Events
There were no material events subsequent to balance date.
15. Impacts of the Adoption of New Zealand Equivalents to International Financial Reporting Standards
The trust changed its accounting policies on 1 April 2007 to comply with the NZ IFRS. The transition to NZ IFRS is accounted for in accordance with NZ IFRS 1: First-time Adoption of New Zealand Equivalents to International Financial Reporting Standards with 1 April 2006 as the date of transition. An explanation of how the transition from superseded policies to NZ IFRS has affected the trust’s balance sheet, income statement and cash flows is set out below:
(a) Balance Sheet
Transition Balance Sheet – 1 April 2006
| Previous GAAP | Effect of Transition to NZ IFRS | NZ IFRS | |
|---|---|---|---|
| $ | $ | $ | |
| Cash and cash equivalents | 47,571 | 1,500,000 | 1,547,571 |
| Receivables | 5,037,875 | – | 5,037,875 |
| Total current assets | 5,085,446 | 1,500,000 | 6,585,446 |
| Property, plant & equipment | 54,449 | – | 54,449 |
| Investments | 14,850,000 | (1,500,000) | 13,350,000 |
| Total assets | 19,989,895 | – | 19,989,895 |
| Current liabilities | 1,945,405 | – | 1,945,405 |
| Equity | 18,044,490 | – | 18,044,490 |
| Total liabilities and equity | 19,989,895 | – | 19,989,895 |
Comparative Balance Sheet – 31 March 2007
| Previous GAAP | Effect of Transition to NZ IFRS | NZ IFRS | |
|---|---|---|---|
| $ | $ | $ | |
| Cash and cash equivalents | 151,509 | 1,550,000 | 1,701,509 |
| Trade and other receivables | 5,609,951 | – | 5,609,951 |
| Total current assets | 5,761,460 | 1,550,000 | 7,311,460 |
| Property, plant and equipment | 39,522 | – | 39,522 |
| Investments | 11,550,000 | (1,550,000) | 10,000,000 |
| Total assets | 17,350,982 | – | 17,350,982 |
| Current liabilities | 898,549 | – | 898,549 |
| Equity | 16,452,433 | – | 16,452,433 |
| Total liabilities and equity | 17,350,982 | – | 17,350,982 |
(b) Income Statement
The above change has had no effect on reported profit for all periods presented in these financial statements.
(c) Cash Flow Statement
The material difference between the cash flow statement presented under NZ IFRS and the cash flow statement presented under the previous NZ GAAP was:
- Under previous NZ GAAP, cash flows arising from movements in short term deposits were treated as an investing activity. Under NZ IFRS, these are now treated as operating activity. The effect of this change was to increase the net cash inflow from investments by $50,000, the cash and cash equivalents at the start of the year by $1,500,000 and at the end of the year by $1,550,000.
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NZ Gazette 2008, No 131
✨ LLM interpretation of page content
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Notes to the Financial Statements for the Year Ended 31 March 2008
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🏢 State Enterprises & InsuranceFair Value, Financial Instruments, Contingent Liabilities, Capital Commitments, Subsequent Events, Adoption of NZ IFRS, Balance Sheet, Income Statement, Cash Flow Statement