✨ Financial Statements Notes
2346 NEW ZEALAND GAZETTE, No. 87 21 JULY 2010
EASTERN AND CENTRAL COMMUNITY TRUST INC
Exposure to currency risk:
| Asset | Australian Dollar at 31 March 2010 $ | US Dollar at 31 March 2010 $ | Australian Dollar at 31 March 2009 $ | US Dollar at 31 March 2009 $ |
|---|---|---|---|---|
| Equities | 11,585,597 | 62,456,008 | 416,760 | 47,685,759 |
The following NZD exchange rates applied during the year:
| Currency | Average monthly Mid-Rate for 2009 - 2010 | Average monthly Mid-Rate for 2008 - 2009 |
|---|---|---|
| Australian Dollar | 0.7971 | 0.8216 |
| US Dollar | 0.6785 | 0.6502 |
Sensitivity Analysis for Currency:
A 10 per cent movement of the NZD against the following currencies at 31 March would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. This analysis is performed on the same basis for 2009.
Effect in NZD:
| Effect of Movements in NZD | Profit or (Loss) 31 March 2010 $ | Profit or (Loss) 31 March 2009 $ |
|---|---|---|
| 10% fall in NZD/AUD | 1,287,289 | 46,306 |
| 10% rise in NZD/AUD | (1,053,236) | (37,887) |
| 10% fall in NZD/USD | 6,939,556 | 5,298,417 |
| 10% rise in NZD/USD | (5,677,819) | (4,335,069) |
b) Interest Rate Risk
The Trust's investments in fixed rate securities are subject to interest rate risk. The Trust's SIPO requires a fixed rate security to have a minimum of a BBB rating or equivalent grade. The maximum exposure to each fixed security is controlled so that the credit rating is the higher the allowable exposure. The fixed rate securities mandate ensures that a high percentage of the securities are rated A or higher. Short term deposits are invested for periods up to 365 days taking into account current interest rates.
The Trust's cheque and call accounts are interest bearing. Any movement in interest rates on these accounts is minimal and not considered to be material.
At the reporting date the interest rate profile of the Trust's interest bearing financial instruments was:
| Carrying Amount 2010 $ | Carrying Amount 2009 $ | |
|---|---|---|
| Fixed Rate Instruments | 62,453,931 | 49,580,516 |
| Variable Rate Instruments | 6,203,976 | 12,962,062 |
| Total | 68,657,907 | 62,542,578 |
Sensitivity Analysis for Fixed Rate Instruments:
A change of 100 basis points (1%) in interest rates would have increased or decreased profit or loss by the amounts shown. The analysis is performed on the same basis for 2009.
| Fixed Rate Instruments | Cash Flow Sensitivity 31 March 2010 $ | Cash Flow Sensitivity 31 March 2009 $ |
|---|---|---|
| 100 basis points increase | 559,539 | 495,805 |
| 100 basis points decrease | (559,539) | (495,805) |
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NZ Gazette 2010, No 87
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Notes to the Financial Statements of Eastern and Central Community Trust Incorporated
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💰 Finance & Revenue21 July 2010
Financial statements, Community Trusts Act 1999, Eastern and Central Community Trust, NZ GAAP, NZ IFRS, Operating leases, Contingencies, Related party transactions, Financial instruments, Market risk, Currency risk, Investment strategy