✨ Financial Statements Notes
3 AUGUST 2011 NEW ZEALAND GAZETTE, No. 117 3257
TSB Community Trust
Notes to the Financial Statements
For the year ended 31 March 2011
- Statement of Accounting Policies (continued)
Basis of Preparation
The financial statements are prepared on the historical cost basis. The accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transaction or other events is reported.
Presentation Currency and Rounding
The financial statements are presented in New Zealand dollars and are rounded to the nearest whole dollar.
Specific Accounting Policies
The following is a summary of the significant accounting policies adopted by the trust in the preparation of these financial statements.
a) Revenue
Revenue is recognised to the extent that it is probable that economic benefits will flow to the Trust and that the revenue can be reliably measured. The principal sources of revenue are interest and dividends.
Interest revenue is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.
Dividends are recognised on an accrual basis when the Trust’s right to receive payment has been established.
b) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call and other short term highly liquid investments which are subject to insignificant risks of changes in value.
c) Financial Instruments
Investments are recognised on trade date where purchase of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs.
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NZ Gazette 2011, No 117
✨ LLM interpretation of page content
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TSB Community Trust Financial Statements
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💰 Finance & Revenue5 July 2011
Financial Statements, Accounting Policies, Community Trusts, TSB