✨ Financial Statements Notes
NEW ZEALAND GAZETTE, No. 107
24 JULY 2009
TSB Community Trust
Notes to the Financial Statements
For the year ended 31 March 2009
1. Statement of Accounting Policies continued
Basis of Preparation
The financial statements are prepared on the historical cost basis. The accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transaction or other events is reported.
Presentation Currency and Rounding
The financial statements are presented in New Zealand dollars and are rounded to the nearest whole dollar.
Specific Accounting Policies
The following is a summary of the significant accounting policies adopted by the trust in the preparation of these financial statements.
a) Revenue
Revenue is recognised to the extent that it is probable that economic benefits will flow to the Trust and that the revenue can be reliably measured. The principal sources of revenue are interest and dividends.
Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.
Dividends are recognised on an accrual basis when the Trust’s right to receive payment has been established.
b) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call and other short term highly liquid investments which are subject to insignificant risks of changes in value.
c) Financial Instruments
Investments are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs.
Subsequent to initial recognition, investments in subsidiaries are measured at cost.
At balance date the Trust had the following categories of financial assets.
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NZ Gazette 2009, No 107
✨ LLM interpretation of page content
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TSB Community Trust Statement of Accounting Policies
(continued from previous page)
🏢 State Enterprises & Insurance30 June 2009
Accounting Policies, Financial Statements, NZ GAAP, NZ IFRS, TSB Community Trust