✨ Financial Statements
2884 NEW ZEALAND GAZETTE, No. 125 21 AUGUST 2009
The Trust uses financial instruments to reduce exposure to fluctuations in foreign currency denominated assets. Forward exchange contracts are entered into to hedge foreign currency denominated assets. These are converted to the New Zealand dollar rate at balance date with all realised and unrealised gains and losses being recognised in the Statement of Financial Performance.
The Trust derecognises a financial asset when and only when the contractual rights to cash flows from the financial asset expire.
Reserves
Transfers to the Capital Maintenance Reserve are based on the annual movement in the Consumer Price Index as described in Note 6.
Transfers to all other Reserves from the Retained Surplus are made at the discretion of the Trustees.
Taxation
The Income Tax Act 1994 provides exemption from income tax for Community Trusts established under the Trustee Banks Restructuring Act 1988. The amendment applied from the 2005 income year, and consequently no taxation has been provided for in these financial statements.
Changes in Accounting Estimates
The Trust’s property known as Allendale House has a New Zealand Historic Places Trust classification. As from 1 April 2008 Allendale House is no longer depreciated as the Trustees consider the useful life indefinite. Previously Buildings were depreciated on a straight line basis at 2% of cost.
Next Page →
NZ Gazette 2009, No 125
✨ LLM interpretation of page content
💰
ASB Community Trust Financial Statements
(continued from previous page)
💰 Finance & RevenueFinancial instruments, Foreign currency, Forward exchange contracts, Capital Maintenance Reserve, Retained Surplus, Taxation, Income Tax Act 1994, Community Trusts, Accounting estimates, Depreciation, Historic Places Trust