✨ Financial Statements Notes
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 March 2011
(b) Trade, Donations and Other Payables
Trade payables and other payables are recognised at fair value when the Trust becomes obliged to make future payments resulting from the purchase of goods and services. Subsequent to initial recognition, trade payables and other payables are recorded at amortised cost. Given the nature of these liabilities, amortised cost equals their notional principal.
Donations payable are discretionary donations where there are no significant conditions attached or where the significant conditions attached to the donations have been met at balance date. Subsequent to initial recognition, donations payable are recorded at amortised cost. Given the nature of these liabilities, amortised cost equals their notional principal.
(c) Employee Entitlements
Provision is made for wages and salaries, including non monetary benefits, annual leave and accumulating sick leave when it is probable that settlement will be required and they are capable of being measured reliably. Provisions in respect of employee entitlements expected to be settled within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Provisions made in respect of employee entitlements not expected to be settled within 12 months are measured at the present value of the estimated cash outflows to be made in respect of services provided up to the reporting date.
Liabilities for non accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.
(d) Donations
Discretionary donations made are included in the Statement of Comprehensive Income when the donation is approved by the Trustees, when the donee has been notified and when all significant conditions attached to the donation have been met.
(e) Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand and cash in banks. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
(f) Financial Assets and Liabilities
Investments
Investments are recognised and derecognised on trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned. Investments are initially measured at fair value, net of transaction costs except for those financial assets classified as at fair value through profit or loss which are initially measured at fair value.
Financial assets
Financial assets are classified into the following specified categories: financial assets ‘at fair value through profit or loss’, ‘held to maturity’ investments, ‘available for sale’ financial assets, and ‘loans and receivables’. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
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NZ Gazette 2011, No 119
✨ LLM interpretation of page content
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Notes to Financial Statements of The Waikato Community Trust Incorporated
(continued from previous page)
💰 Finance & RevenueFinancial statements, Accounting policies, Trade payables, Donations, Employee entitlements, Cash equivalents, Financial assets