✨ Financial Statements Notes
THE COMMUNITY TRUST OF WELLINGTON
Notes to the Financial Statements
For the Twelve Months Ended 31 March 2011
Loans and Receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method less any impairment.
Cash and cash equivalents comprise cash balances and call deposits.
(g) Impairment
The carrying amount of the Trust’s assets is reviewed each balance date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.
If the estimated recoverable amount of an asset is less than its carrying amount, the asset is written down to its estimated recoverable amount and an impairment loss is recognised immediately in the Statement of Comprehensive Income.
The estimated recoverable amount of investments carried at amortised cost is calculated as the present value of estimated future cash flows, discounted at their original effective interest rate. Receivables with a short duration are not discounted.
The estimated recoverable amount of other assets is the greater of their fair value, less costs to sell, and value in use. Value in use is determined by estimating future cash flows from the use and ultimate disposal of the asset and discounting these to their present value using a pre-tax discount rate that reflects current market rates and the risks specific to the asset. For an asset that does not generate largely independent cash flows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
Impairment losses are reversed when there is a change in the estimates used to determine the recoverable amount.
(h) Operating Leases
Operating lease payments, where the lessor effectively retains substantially all the risks and rewards of ownership of the leased items, are included in the determination of the net surplus in equal instalments over the lease term.
2. Investment Income
| 2011 | 2010 | |
|---|---|---|
| Portfolio Income-Realised Revenue | 1,354,953 | 4,572,372 |
| Net Change in Fair Value of Financial Assets | 2,096,280 | 4,001,187 |
| Total Investment Income | 3,451,233 | 8,573,559 |
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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, Loans, Receivables, Impairment, Operating Leases, Investment Income, Charitable Trust, Wellington