✨ Financial Statements
10 MARCH 2009 NEW ZEALAND GAZETTE, No. 29 779
THE COMMUNITY TRUST OF SOUTHLAND
NOTES TO & FORMING PART OF THE FINANCIAL STATEMENTS
For the Year Ended 31 March, 2008
18. KEY MANAGEMENT PERSONNEL.
The compensation of the Executives, being the key management personnel of the entity, is set out below:
| Group | Parent | |||
|---|---|---|---|---|
| 2008 | 2007 | 2008 | 2007 | |
| $000 | $000 | $000 | $000 | |
| Short term | ||||
| employee | ||||
| benefits | 303 | 283 | 149 | 140 |
| ---------------- | ------------ | ----------- | ------------ | ----------- |
| $303 | $283 | $149 | $140 |
19. 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.
The measures the Trustees have put in place to manage these risks are:
- to retain an investment advisor to advise the Trust as to appropriate investment objectives, policies, and strategies
- to use external Fund Managers to undertake the management of the investments
- to operate a widely diversified portfolio of investments
Fair Value Interest Rate Risk
Fair value interest rate risk is the risk that the fair 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 fixed rate cash at bank and fixed rate cash deposits with fund managers.
Cash Flow Interest Rate Risk
Cash flow interest rate risk is the risk that the cash flows from a variable rate financial instrument will fluctuate because of changes in market interest rates. Investments issued at variable interest rates expose the Trust to cash flow interest rate risk.
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NZ Gazette 2009, No 29
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Financial Statements of The Community Trust of Southland
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💰 Finance & RevenueFinancial Statements, Community Trust, Southland, Compensation, Financial Instruments, Risk Management