✨ Financial Statements
6 AUGUST 2010 NEW ZEALAND GAZETTE, No. 96 2563
TSB Community Trust
Notes to the Financial Statements
For the year ended 31 March 2010
11. Financial Instruments continued
| 0-6 Months $ | 6-12 Months $ | 1-2 Years $ | 2-5 Years $ | Over 5 Years $ | Total $ | |
|---|---|---|---|---|---|---|
| 2009 | ||||||
| Financial liabilities | ||||||
| Payables | (1,197,612) | - | - | - | - | (1,197,612) |
| Total financial liabilities | (1,197,612) | - | - | - | - | (1,197,612) |
Sensitivity Analysis
If interest rates on cash balances and investments moved by +/- 0.5%, the Trust’s income from its cash balances and investments could be higher or lower by $50,076. This sensitivity is based on the average cash balances and investments held at month end throughout the year. There has been no change to the method of calculation from previous periods.
Credit Risk
Credit risk is the risk that the counterparty to a transaction with the Trust will fail to discharge its obligations, causing the Trust to incur a financial loss. Financial instruments which potentially subject the Trust to credit risk principally consist of cash and cash equivalents, loans and receivables and investments.
The Trust has a significant concentration of credit risk with the TSB Bank Ltd. The Trust’s policy is to keep investments with the TSB Bank Ltd conditional upon the bank’s credit rating remaining at a predetermined level. The Trust manages its credit risk by maintaining a reserve fund in order to maintain the level of grants paid in the event that income decreases.
Maximum exposures to credit risk at balance date are the carrying amounts of financial assets in the statement of financial position.
No financial assets are past due or impaired.
Fair Value
The estimated fair values of financial instruments that differ from carrying values are as follows:
| Carrying Amount 2010 $ | Fair Value 2010 $ | Carrying Amount 2009 $ | Fair Value 2009 $ | |
|---|---|---|---|---|
| NZ Government Bonds | - | - | 2,101,445 | 2,100,000 |
| Held-to-Maturity Investments | 3,000,000 | 3,024,200 | - | - |
The fair value of the NZ Government Bonds of $2,100,000 was received at maturity on 15 July 2009.
The carrying values for cash and cash equivalents and loans and receivables approximate their fair values as they are short term in nature.
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NZ Gazette 2010, No 96
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TSB Community Trust Financial Statements
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💰 Finance & Revenue29 June 2010
Financial Statements, Community Trusts, TSB Community Trust, Financial Instruments, Sensitivity Analysis, Credit Risk, Fair Value