✨ Financial Statements
THE COMMUNITY TRUST OF SOUTHLAND
NOTES TO & FORMING PART OF THE FINANCIAL STATEMENTS
For the Year Ended 31 March, 2008
Reconciliation of Surplus under NZ IFRS
| Year Ended | |
|---|---|
| 31 March 2007 | |
| $000 | |
| Total reported surplus/(deficit) | |
| under superseded NZ GAAP | (5,629) |
NZ IFRS adjustments:
| Fair value of Grants committed | |
| not paid | a | 263 |
| Total NZ IFRS reported | |
| surplus/(deficit) | $(5,366) |
(a) Grants committed not paid
Under previous NZ GAAP Grants committed not paid were recognised at the undiscounted costs of discharging the grant commitment.
Under NZ IFRS all Grants committed not paid are initially recognised at fair value, and subsequently measured at amortised costs using the effective interest rate. This has the effect of discounting the Grants committed not paid at initial recognition. The discount unwinds as interest expense over the remaining periods until the Grant is paid using the original effective interest rate.
23. EVENTS AFTER BALANCE DATE
Subsequent to balance date the continued decline of the New Zealand and international securities markets, as a result of events associated with the global credit crunch, has resulted in the fair value of the Trust’s investments reducing by approximately $11 million as at 31 October 2008.
In line with the Trust’s currency management policy, following the fall in the New Zealand dollar the Trustees have as at 6th November 2008 implemented full hedging against all non Australian international equities, against future currency movements. Consistent with the Trust’s currency management policy, the application of future hedging will vary to reflect movements in the New Zealand dollar.
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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, Trustee Fees, Accounting Policies, NZ IFRS, Equity Reconciliation, Events After Balance Date, Currency Management, Global Credit Crunch