✨ Financial Statements Notes
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 March 2009
Specific Accounting Policies
The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied:
(a) Revenue Recognition
Dividend and interest revenue
Dividend revenue from investments is recognised when the shareholders’ rights to receive payment have been established. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.
Rental revenue
Rents (net of any incentives) are recognised on a straight line basis over the lease term.
(b) Trade & Other Payables
Trade payables and other accounts payable are recognised at fair value when the Trust becomes obliged to make future payments resulting from the purchase of goods and services. Subsequent to initial recognition, trade payables and other accounts payable are recorded at amortised cost. Given the nature of these liabilities, amortised cost equals their notional principal.
Donations payable are discretionary donations where there are no significant conditions attached or where the significant conditions attached to the donations have been met at balance date.
(c) Employee Entitlements
Provision is made for wages and salaries, including non monetary benefits, annual leave and accumulating sick leave when it is probable that settlement will be required and they are capable of being measured reliably. Provisions in respect of employee entitlements expected to be settled within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Provisions made in respect of employee entitlements not expected to be settled within 12 months are measured at the present value of the estimated cash outflows to be made in respect of services provided up to the reporting date.
Liabilities for non accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.
(d) Donations
Discretionary donations made are included in the Income Statement when the donation is approved by the Trustees, when the donee has been notified and when all significant conditions attached to the donation have been met.
(e) Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand and cash in banks. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
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NZ Gazette 2009, No 113
✨ LLM interpretation of page content
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Financial Statements of The Waikato Community Trust Incorporated
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💰 Finance & RevenueFinancial Statements, Accounting Policies, Waikato Community Trust, Disclosures, Standards