✨ Financial Statements Notes
THE COMMUNITY TRUST OF MID & SOUTH CANTERBURY INC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2012
-
Statement of Accounting Policies
Reporting Entity
The Community Trust of Mid & South Canterbury Inc. is a Charitable Trust incorporated under the Trustee Banks Restructuring Act 1988. The Financial Statements have been prepared in accordance with the Financial Reporting Act 1993 and generally accepted accounting policies.
General Accounting Policies
The General Accounting Policies adopted in the preparation of these Financial Statements are:
-
The measurement base adopted is that of historical cost, except for the revaluation of investments. Reliance is placed on the fact that the Trust is a going concern.
-
The matching of revenues earned and expenses incurred using accrual accounting.
-
The Trust qualifies for differential reporting on the basis that it is not publicly accountable and does not have revenue greater than $20m or have greater than fifty employees. The Financial Statements have been prepared taking advantage of the differential reporting exemptions with the exception of the preparation of a Statement of Cash Flows.
Particular Accounting Policies
The following are the particular accounting policies which have a material effect on the measurement of results and financial position:
(a) Dividend Income
Dividend Income is included in the Statement of Financial Performance when it is received.
(b) Donations
Donations, Special Projects and Community Loans are accounted for when they are approved for payment.
(c) Investments
Investments held as managed funds are shown at market value. Net income, including unrealised gains or losses from holding such investments are recorded in the Statement of Financial Performance.
(d) Trust Capital
Trust Capital is made up of:
(i) Capital Fund - which records the initial Capital Fund (being the realised value of Trust Bank shares) together with a reserve calculated each year by applying the Consumer Price Index to the opening Capital Fund. The additional amount is allocated from Trust profit on an annual basis.
(ii) General Reserves – This recognises a general reserve intended to enable the Trustees to continue with distributions should the Trust incur a deficit in a particular income year.
Next Page →
NZ Gazette 2012, No 100
✨ LLM interpretation of page content
💰
Notes to the Financial Statements for The Community Trust of Mid & South Canterbury Inc
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Financial Statements, Trust, Canterbury