✨ Financial Statements Notes
THE COMMUNITY TRUST OF WELLINGTON
Notes to the Financial Statements
For the Twelve Months Ended 31 March 2011
(b) Income Tax
The Trust is exempt from income tax under section CW 52 of the Income Tax Act 2007.
(c) Property, Plant & Equipment
Property Plant and Equipment is stated at cost less accumulated depreciation and impairment.
(d) Depreciation
Depreciation has been calculated as follows using the diminishing value method:
| Furniture | 9.0% - 26.4% |
| Equipment | 33.0% - 80.4% |
(e) Investments including Investments in Managed Funds
Shares in listed companies and quoted fixed interest investments are designated as "financial assets at fair value through profit or loss" as the portfolios are managed on a fair value basis in accordance with a documented investment strategy. They are initially recorded at cost and subsequently revalued to bid price each balance date. Gains and losses are recorded in the Statement of Comprehensive Income as part of the investment income.
(f) Financial Instruments
Financial instruments are recognised if the Trust becomes a party to the contractual provisions of the instruments. Financial assets are initially measured at fair value plus transaction costs except for those classified as fair value through profit or loss which are initially measured at fair value. Financial assets are derecognised if the Trust's rights to the cash flows from the financial assets expire or if the Trust transfers a financial asset to another party without retaining control or substantially all risks and rewards of the asset. Regular purchases and sales of financial assets are accounted for at trade date. Financial liabilities are derecognised if the Trust's obligations, specified in the contract, expire, are discharged or cancelled.
Held-to-Maturity Investments
If the Trust has the intent and ability to hold debt securities to maturity, then they are classified as held-to-maturity. Subsequent to initial recognition, held-to-maturity investments are measured at amortised cost using the effective interest method, less any impairment losses.
Investments at Fair Value through profit or loss
An instrument is classified at fair value through the profit and loss if it is held for trading or is designated as such upon initial recognition. Financial instruments are designated at fair value through the profit and loss if the Trust manages such investments and makes purchase and sale decisions based on their fair value. They are initially recorded at cost and subsequently revalued to market bid price each balance date. Upon initial recognition, attributable transaction costs are recognised in the Statement of Comprehensive Income when incurred. Subsequent to initial recognition, financial instruments at fair value through profit or loss are measured at fair value and changes therein are recognised in the Statement of Comprehensive Income.
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NZ Gazette 2011, No 94
✨ LLM interpretation of page content
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Notes to the Financial Statements of The Community Trust of Wellington
(continued from previous page)
💰 Finance & Revenue3 June 2011
Financial Statements, Accounting Policies, Charitable Trust, Wellington