✨ Financial Statements Notes
1 JULY 2009 NEW ZEALAND GAZETTE, No. 96 2141
h) Impairment
The Trust's assets are reviewed at each balance date to determine whether there is any objective evidence of impairment. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses directly reduce the carrying amount of assets and are recognised in the income statement.
i) Trade and Other Payables
Trade payables and other accounts payable are recognised at fair value when the Trust becomes obliged to make future payments resulting from the purchase of goods and services. Subsequent to initial recognition, trade payables and other accounts payable are recorded at cost.
j) Employee Benefits
Provision is made for salaries, annual leave and long service leave when it is probable that settlement will be required and they are capable of being measured reliably. Provisions in respect of employee entitlements expected to be settled within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Provisions made in respect of employee entitlements not expected to be settled within 12 months are measured at the present value of the estimated cash outflows to be made in respect of services provided up to reporting date.
Liabilities for non accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.
k) GST
GST inclusive accounting has been adopted, as the Trust is not registered for GST.
l) Income Tax
The Trust is exempt from income tax under section CW52 of the Income Tax Act 2007.
m) Intangible Assets
Software, when acquired by the Trust, will be measured at cost less accumulated depreciation and impairment losses.
n) Leases
The Trust has no leased assets that are required to be classed as finance leases. Operating leases are not recognised on the balance sheet. Operating lease payments are recognised in the income statement on a straight line basis.
o) Cashflows
The cashflow statement is prepared inclusive of GST, which is consistent with the method used in the income statement. The following are the definitions of the terms used in the cash flow statement:
- Operating activities include all transactions and other events that are not investing or financing activities
- Investing activities include transaction relating to the acquisition, holding or disposal of investments.
- Financing activities are those activities that change the equity of the Trust
- Cash means cash on deposit with banks
p) Comparatives
Some comparative figures have been reclassified for reporting purposes. This does not change the overall result.
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NZ Gazette 2009, No 96
✨ LLM interpretation of page content
💰
Notes to the Financial Statements of Eastern and Central Community Trust
(continued from previous page)
💰 Finance & Revenue29 May 2009
Financial statements, Notes, Accounting policies, Impairment, Trade payables, Employee benefits, GST, Income tax, Intangible assets, Leases, Cashflows, Comparatives