✨ Financial Statements Notes
Notes to the financial statements (continued)
Significant accounting policies (continued)
3 Significant accounting policies
(c) Property, plant and equipment (continued)
(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 Trust 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 diminishing value basis over the estimated useful lives of each part of an item of property, plant and equipment.
The depreciation rates for the current and comparative periods are:
| Furniture & fittings | 11.4% to 33% |
| Office equipment | 26.4% to 80.4% |
| Motor vehicle | 30% |
Depreciation methods, useful lives and residual values are reassessed at the reporting date.
(d) Impairment
The carrying amounts of the Trust’s assets are reviewed at each balance date to determine whether there is any indication of impairment.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses directly reduce the carrying amount of assets and are recognised in the statement of comprehensive income.
(i) Impairment of debt instruments and receivables
The recoverable amount of the Trust’s receivables carried at amortised cost is calculated as the present value of estimated future cash flows, discounted at the original effective interest rate (i.e. the effective interest rate computed at initial recognition of these financial assets). Receivables with a short duration are not discounted.
(ii) Non-financial assets
The carrying amounts of the Trust’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated.
(e) Employee benefits
Liabilities for wages and salaries, including non monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in trade and other payables in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Non accumulating sick leave is recognised when the leave is taken and measured at the rates paid.
(f) Revenue
Investment income
Dividend income is recognised on the date that the Trust's right to receive payment is established. Interest income is recognised as it accrues.
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NZ Gazette 2011, No 104
✨ LLM interpretation of page content
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BayTrust Financial Statements
(continued from previous page)
🏢 State Enterprises & InsuranceFinancial Statements, Accounting Policies, Property, Plant, Equipment, Depreciation, Impairment, Employee Benefits, Revenue