✨ Financial Statements Notes
2 AUGUST 2010 NEW ZEALAND GAZETTE, No. 93 2469
Notes to the Financial Statements
For the year ended 31 March 2010
3 Significant accounting policies (continued)
Trade and other payables
Trade and other payables are stated at amortised cost.
(ii) Derivative financial instruments
The Group uses derivative financial instruments to hedge its exposure to foreign exchange and interest rate risks arising from investment activities. In accordance with its treasury policy, the Group does not hold or issue derivative financial instruments for trading purposes. Hedge accounting is not adopted and derivatives are recognised as trading instruments.
Derivative financial instruments are recognised initially at fair value and transaction costs are expensed immediately. Subsequent to initial recognition, derivative financial instruments are stated at fair value. The gain or loss on remeasurement to fair value is recognised immediately in the statement of comprehensive income.
(d) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
(ii) Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in the statement of comprehensive income as incurred.
(iii) Depreciation
Depreciation is recognised in the statement of comprehensive income on a straight line and diminishing value basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated.
The depreciation rates for the current and comparative periods are as follows:
- Buildings 3% straight line
- Office equipment 6-60% diminishing value
- Furniture and fittings 14-40% diminishing value
- Computers 28-48% diminishing value
Depreciation methods, useful lives and residual values are reassessed at the reporting date.
(e) Investment property
Investment property is property held either to earn rental income or for capital appreciation or for both. Investment property is measured at fair value with any change therein recognised in the statement of comprehensive income.
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NZ Gazette 2010, No 93
✨ LLM interpretation of page content
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Canterbury Community Trust Financial Statements Notes
(continued from previous page)
💰 Finance & Revenue5 July 2010
Financial Statements, Accounting Policies, Reporting Entity, Fair Value, NZ GAAP, Canterbury Community Trust