✨ Financial Statements Notes
2588
NEW ZEALAND GAZETTE, No. 113
5 AUGUST 2009
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 March 2009
15. RECONCILIATION OF DEFICIT FOR THE PERIOD TO NET CASH FLOWS FROM OPERATING ACTIVITIES
| 2009 NZ$'000 | 2008 NZ$'000 | |
|---|---|---|
| DEFICIT FOR THE PERIOD | (32,743) | (8,232) |
| Adjust for non-cash items: | ||
| Profit on Sale of Propery, Plant and Equipment | (8) | - |
| Depreciation | 96 | 81 |
| Unrealised Losses | 14,020 | 20,550 |
| Fair Value Adjustment on Initial Recognition of the Interest Free Loan | 525 | - |
| Notional Interest on Interest Free Loan | (53) | - |
| 14,580 | 20,631 | |
| Impact of changes in net assets and liabilities: | ||
| (Increase) Decrease in Trade & Other Receivables | 20 | 2 |
| Increase (decrease) in Trade & Other Payables | (52) | 19 |
| Increase (decrease) in Donations Payable | (1,071) | 602 |
| Increase (decrease) in Employee Entitlements | (1) | 5 |
| (1,104) | 628 | |
| Net cash inflow from operating activities | (19,267) | 13,027 |
16. FINANCIAL INSTRUMENTS
Financial Risk Management
The Trust’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and equity price risk), credit risk and liquidity risk.
The Trust has policies to manage the risks associated with financial instruments. The Trust is risk averse and seeks to minimise exposure from its treasury activities. The Trust has established investment policies. These policies do not allow any transactions that are speculative in nature to be entered into.
Market Risk
The Trust’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and equity prices.
There has been no change to the Trust’s exposure to market risks or in the manner it manages and measures the risk.
Fair value interest rate risk
Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The Trust’s exposure to fair value interest rate risk is limited to its investments in New Zealand fixed interest and cash and global fixed interest funds included in financial assets at fair value through profit or loss category in the Balance Sheet (see note 11).
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NZ Gazette 2009, No 113
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Notes to Financial Statements of The Waikato Community Trust Incorporated
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💰 Finance & RevenueFinancial Statements, Reconciliation of Deficit, Cash Flows, Financial Instruments, Risk Management