4 SEPTEMBER 2009 NEW ZEALAND GAZETTE, No. 133 3109

Grants

Approval of a grant by Trustees results in the recognition of that grant within the Foundation’s financial statements whether or not payment has been made.

Committed grants are payable on the satisfaction of any conditions placed on the recipients. Grants no longer required or not fully utilised by grant recipients are shown separately in the Income Statement.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, bank balances, deposits held at call with banks, other short term highly liquid investments with original maturities of twelve months or less, which are held to meet short term cash requirements.

Property, Plant & Equipment

Property, Plant & Equipment are valued at cost, less accumulated depreciation and accumulated impairment losses except for freehold land and buildings which are subsequently revalued on a cyclical basis, with no individual Land and Building being recognised at a valuation undertaken more than 3 years previously.

Valuations are at net current value, as determined by an independent valuer. Any revaluation surplus arising on the revaluation of an asset is transferred directly to the asset revaluation reserve. A revaluation deficit in excess of the asset revaluation reserve balance for the asset is recognised in the income statement in the period it arises. Revaluation surpluses which reverse previous revaluation deficits recorded in the income statement are recognised as revenue in the income statement.

Property, Plant & Equipment are reviewed annually to determine any impairment losses. Impairment losses are recognised in the Income Statement.

When an item of property, plant and equipment is disposed of, any gain or loss is recognised in the income statement and is calculated as the difference between the sale price and the carrying value of the item.

Depreciation, Amortisation and Impairment Losses

Depreciation is provided over the useful life of the assets. Buildings have not been depreciated as the impairment assessment is that there has been no impairment in value. Other Plant and Equipment are depreciated on a diminishing value basis. The rates used are those approved by Trustees as follows:

| Land | Nil |
| Buildings | Nil |
| Office Equipment & Furniture | 15% to 48% |

Foreign Currency Transactions and Balances

Foreign Currency transactions are recorded in New Zealand dollars at the spot exchange rate applying at the date of the transaction.

All amounts denominated in foreign currencies at balance date are translated to New Zealand dollars at the balance date closing exchange rate.

All realised and unrealised gains and losses on foreign currency transactions are recognised in the Income Statement.

Financial Assets

Financial instruments are recognised in the balance sheet when the Foundation becomes party to a financial contract. They include cash balances, investments, deposits, bank overdraft, bills payable, receivables, payables and intercompany balances.

All assets that are financial instruments are recognised in the Balance Sheet.

All investments are initially recognised at fair value, being the fair value of consideration paid. After initial recognition, financial assets designated at fair value through profit or loss are revalued to fair value at each reporting date.

For investments that are actively traded in organised financial markets, fair value is determined by reference to exchange quoted market bid prices at the close of business on the Statement of Financial Position date.

All realised and unrealised gains or losses on investments are recognised in the Income Statement.

Investments in pooled funds are valued at the unit exit price determined by the Fund Manager at the close of business on the Balance Sheet date.

Investment transactions are recorded by Fund Managers on a transaction date basis.

Financial assets are managed and have their performance evaluated on a fair value basis in accordance with risk management and investment strategies of the Foundation, as disclosed in Note 9.