✨ Financial Statements
28 SEPTEMBER 2011 NEW ZEALAND GAZETTE, No. 146 4175
THE COMMUNITY TRUST OF SOUTHLAND
NOTES TO & FORMING PART OF THE FINANCIAL STATEMENTS
For the Year Ended 31 March, 2011
22. KEY MANAGEMENT PERSONNEL
The compensation of the Executives, being the key management personnel is set out below:
| Group 2011 $000 | Group 2010 $000 | Parent 2011 $000 | Parent 2010 $000 | |
|---|---|---|---|---|
| Short term employee benefits | 334 | 337 | 185 | 185 |
23. FINANCIAL INSTRUMENTS
Financial Risk Management
The Trust’s activities expose it to a variety of financial risks including market risk (including fair value interest rate risk, cash flow interest rate risk, currency risk, and equity price risk), credit risk and liquidity risk.
The Trust has policies to manage the risks associated with financial instruments. The Trust is risk averse and seeks to minimise exposure from its treasury activities. The Trust has established investment policies. These policies do not allow any transactions that are speculative in nature to be entered into.
Market Risk
The Trust’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, interest rates and equity prices.
There has been no change to the Trust’s exposure to market risks or in the manner it manages and measures the risk.
The measures the Trustees have put in place to manage these risks are:
- to retain an investment advisor to advise the Trust as to appropriate investment objectives, policies, and strategies
- to use external Fund Managers to undertake the management of the investments
- to operate a widely diversified portfolio of investments
Fair Value Interest Rate Risk
Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market interest rates. The Trust’s exposure to fair value interest rate risk is limited to its fixed rate cash at bank and fixed rate cash deposits with fund managers.
Cash Flow Interest Rate Risk
Cash flow interest rate risk is the risk that the cash flows from a variable rate financial instrument will fluctuate because of changes in market interest rates. Investments issued at variable interest rates expose the Trust to cash flow interest rate risk.
Currency Risk
Currency risk is the risk that the value of a foreign currency denominated financial instrument will fluctuate due to changes in foreign exchange rates.
Foreign exchange risk arises from transactions and recognised assets that are denominated in a currency that is not the Trust’s functional currency.
Equity Price Risk
The Trust is exposed to equity price risk. This arises from Managed Funds held by the Trust and classified as financial assets at fair value through profit and loss.
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NZ Gazette 2011, No 146
✨ LLM interpretation of page content
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Financial Statements of the Community Trust of Southland
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💰 Finance & Revenue24 August 2011
Financial Statements, Community Trust, Southland, Key Management Personnel, Financial Instruments, Financial Risk Management, Market Risk, Interest Rate Risk, Currency Risk, Equity Price Risk