✨ Financial Statements Notes
ASB COMMUNITY TRUST
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2010
All investments are initially recognised at fair value, being the fair value of consideration paid. After initial recognition, financial assets are designated at fair value through profit or loss as the Group manages the investments, based on their fair value. Investments 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 Consolidated Statement of Financial Position date. As these are quoted prices (unadjusted) in active markets for identical assets, they fall within Level 1 of the fair value hierarchy within NZ IFRS 7 Financial Instruments: Disclosures that reflects the significance of the inputs used in making measurements.
All realised and unrealised gains or losses on investments are recognised in the Consolidated Statement of Comprehensive Income.
Investments in pooled funds are valued at the unit exit price determined by the Fund Manager at the close of business on the Consolidated Statement of Financial Position date. This is based on quoted prices (unadjusted) in active markets for the underlying fund assets, and fall within Level 1 of the NZ IFRS 7, fair value hierarchy.
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 Group, as disclosed in Note 9.
The Group uses derivative financial instruments, forward exchange contracts, to reduce exposure to fluctuations in foreign currency denominated assets and liabilities. Forward exchange contracts are entered into to hedge foreign currency denominated assets. Derivatives are not held or issued for trading purposes. However derivatives not qualifying for hedge accounting purposes are accounted for as trading instruments. Derivative financial instruments are recognised initially at fair value and transactional costs are expensed immediately. Subsequent to initial recognition derivative financial instruments are stated at fair value. The gain or loss on re-measurement to fair value is recognised immediately in the Consolidated Statement of Comprehensive Income.
The Group derecognises a financial asset when and only when the contractual rights to cash flows from the financial asset expire.
Financial Liabilities
All liabilities that are financial instruments are recognised in the Consolidated Statement of Financial Position.
Financial liabilities comprising Sundry Accounts Payable, Loans from Community Trusts, and subsidiary company current account are stated at cost.
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NZ Gazette 2010, No 117
✨ LLM interpretation of page content
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ASB Community Trust Financial Statements
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💰 Finance & RevenueFinancial statements, Community Trusts, ASB Community Trust, Investments, Fair value, Derivatives