28 AUGUST 2008 NEW ZEALAND GAZETTE, No. 133 3513

Cashflows from investment activities:
Receipts from fund managers 11,161 6,956 11,161 6,956
Acquisition of property, plant and equipment – (1) – –
Net cash from/used in investing activities 11,161 6,955 11,161 6,955

Cashflows from financing activities:
Advance from/(to) subsidiary companies – – 114 (1,642)
Donations paid 9 (8,216) (6,550) (8,216) (4,797)
New cash from/used in financing activities (8,216) (6,550) (8,102) 192,221

Net (decrease)/increase in cash and cash equivalents 1,875 (736) 1,906 (724)
Cash and cash equivalents at 1 April 885 1,621 834 1,558
Cash and cash equivalents at 31 March 15 2,760 885 2,740

Notes to the Financial Statements–Significant Accounting Policies

1. Reporting Entity
   The Community Trust of Otago ("the Parent") is a charitable trust, domiciled in New Zealand, incorporated in accordance with the provisions of the Community Trusts Act 1999.

Separate parent and consolidated financial statements are presented. The consolidated financial statements for the year ended 31 March 2008 comprise the Parent and its subsidiary Fillmor House Limited (together referred to as the "Group").

2. Basis of Preparation

(a) Statement of Compliance
The financial statements have been prepared in accordance with 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 are comply with International Financial Reporting (IFRS). These are the Group’s first financial statements that NZ IFRS 1 has been applied to.

An explanation of how the transition to NZ IFRS has affected the reported financial position, financial performance and cash flows of the Group is provided in Note 26.

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 trustees on 24 June 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.
• Investment property is 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), which is the Parent’s functional currency. 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) Basis of Consolidation

(i) Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

(ii) Transactions eliminated on consolidation
Intra-group balances, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.