✨ Financial Statements Notes
18 AUGUST 2010 NEW ZEALAND GAZETTE, No. 104 2787
Notes to the financial statements (continued)
Significant accounting policies (continued)
3 Significant accounting policies
(g) Grants payable
Grants payable are recognised as a distribution from equity when the payment of the grant has been approved by the Trustees and the recipient of the grant does not have any further obligations to meet in order to receive the grant.
(h) New standards and interpretations not yet adopted
A number of new interpretations are not yet effective for the year ended 31 March 2010 and have not been applied in preparing these financial statements:
- NZ IAS24 Related party Disclosures. NZ IAS 24, which become mandatory for the Trust’s 2011 financial statements, is not expected to have any impact on the financial statements. The Trust has not yet determined the potential effect of the interpretation.
4 Determination of fair values
A number of the Trust’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
(a) Investments in equity and debt securities
The fair value of financial assets at fair value through profit or loss, is determined by reference to their quoted bid price at the reporting date wherever this information is available. Certain investments in emerging markets are only traded on certain days. In this instance the trades that occurred on the date nearest to the balance date have been used.
(b) Loans
The fair value of loans is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date.
(c) Derivatives
The fair value of forward exchange contracts is based on their listed market price, if available. If a listed market price is not available, then fair value is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on government bonds).
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NZ Gazette 2010, No 104
✨ LLM interpretation of page content
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BayTrust Annual Report for the year ended 31 March 2010
(continued from previous page)
💰 Finance & RevenueAccounting policies, Grants payable, Fair values, Investments, Loans, Derivatives