✨ Financial Statements Notes
5 AUGUST 2011 NEW ZEALAND GAZETTE, No. 119 3333
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
For the year ended 31 March 2011
Embedded derivatives
Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of host contracts and the host contracts are not measured at fair value with changes in fair value recognised in profit or loss.
Trust Waikato does not apply hedge accounting.
(n) Leased Assets
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Payments under operating leases are recognised in the Statement of Comprehensive Income on a straight line basis over the term of the lease.
Entity as lessor
Amounts due from lessees under finance leases are recorded as receivables. Finance lease receivables are initially recognised at amounts equal to the present value of the minimum lease payments receivable plus the present value of any unguaranteed residual value expected to accrue at the end of the lease term. Finance lease payments are allocated between interest revenue and reduction of the lease receivable over the term of the lease in order to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.
When assets are leased out under an operating lease, the asset is included in property, plant and equipment in the Balance Sheet based on the nature of the asset. They are depreciated over their expected useful lives on a basis consistent with similar owned property, plant and equipment.
2. INCORPORATION
The Trust Bank Waikato Community Trust was incorporated on 5 August, 1988 with Trust capital of $21,316,622. The name of the Trust was changed to The Waikato Community Trust Incorporated in December 1997.
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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
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💰 Finance & RevenueEmbedded derivatives, Leased assets, Financial statements, Accounting policies