NEW ZEALAND GAZETTE, No. 133

4 SEPTEMBER 2009

Notes to the Consolidated Financial Statements for the Year Ended 31 March 2009

1. Summary of Significant Accounting Policies

Reporting Entity

The Whanganui Community Foundation Inc. is a Trust established pursuant to section 14(1) of the Trustee Banks Restructuring Act 1988. This Act has since been repealed and replaced by the Community Trusts Act 1999. Pursuant to the Act the Whanganui Community Foundation is incorporated under the Charitable Trusts Act 1957.

The Group consists of Whanganui Community Foundation Inc and its subsidiary Whanganui Charitable Foundation Ltd. The Whanganui Community Foundation Incorporated is a tax exempt entity pursuant to sCW44 of the Income Tax Act 2004.

The Whanganui Charitable Foundation Ltd is a limited liability company registered as a charitable entity under the Charities Act 2005 (CC21727)

The Foundation is a Public Benefit Entity which makes grants to qualifying not for profit entities in the Whanganui, Rangitikei, Waimarino and Southern Taranaki regions.

Accounting Policies

The measurement basis adopted is that of historical cost except for financial assets and liabilities which are recorded at fair value.

In December 2002 the New Zealand Accounting Standards Review Board announced that New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) will apply to all New Zealand entities for financial reporting periods commencing on or after 1 January 2007.

The financial statements of the Foundation for the year ended 31 March have been prepared in accordance with and comply with the International Financial Reporting Standards.

Reliance is placed on the fact that the Foundation is a going concern. The Financial Statements have been prepared in accordance with the requirements of the Financial Reporting Act 1993.

The Foundation’s functional currency is New Zealand Dollars.

Basis of Preparation

The preparation of financial statements in conformity with NZ IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and the reported amounts of assets, liabilities, income and expense. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements are made by management in the application of NZ IFRS that have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in Note 9: Financial Assets and Liabilities.

Consolidated financial statements

The Consolidated Statements include the Foundation’s wholly owned subsidiary, Whanganui Charitable Foundation Ltd.

The purchase method is used to prepare the consolidated financial statements, which involves adding together like items of assets, liabilities, equity, income and expenses on a line by line basis. All balances and transactions between the Whanganui Community Foundation and Whanganui Charitable Foundation are eliminated on consolidation.

Cash Flow Statement

Cash comprises cash at bank and call deposits but does not include cash or deposits held by the Fund Managers. Therefore the Cash Flow Statement does not reflect the cash flows within the Fund Managers’ portfolios.

Revenue - Dividends, Pooled Funds and Interest

Income from Pooled Funds is recognised on declaration date. Interest is recognised on an accrual basis.