✨ Financial Statements Notes
THE COMMUNITY TRUST OF MID & SOUTH CANTERBURY INC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2012 (Continued)
(e) Depreciation
The assets of the Trust are stated at cost price less depreciation based on rates as allowed by the Inland Revenue Department.
Changes in Accounting Policies
The trust is no longer depreciating buildings. Previously buildings had been depreciated at 3%, straight line method. The effect of this increases the profit of the Community House Account by $62,691 which would have previously been deducted as depreciation. There have been no other changes in accounting policies.
- Capital Fund
| 2012 | 2011 | |
|---|---|---|
| Initial Capital Fund | 32,087,148 | 32,087,148 |
| Inflation Reserve – Opening Balance | 11,894,880 | 10,746,207 |
| Current Movement in Equity | (1,487,702) | 1,148,673 |
| Inflation Reserve – Closing Balance | 10,407,178 | 11,894,880 |
| Capital Fund at End of Year | 42,494,326 | 43,982,028 |
- Reserves
(i) Capital Fund
The initial Capital Fund (being the realised value of Trust Bank shares) was $32,087,148.
(ii) Inflation Reserve
It is intended to increase the inflation reserve each year by applying the Consumer Price Index to the sum of the initial Capital Fund and opening Inflation Reserve. The nominal Inflation Reserve required under this policy at 31 March 2012 is $11,473,225.
(iii) General Reserve
The Trustees intend to compile a minimum General Reserve equivalent to 5% of the initial Capital Fund and Inflation Reserve. The General Reserve is intended to enable the Trustees to continue with distributions should the Trust incur a deficit in a particular income year.
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NZ Gazette 2012, No 100
✨ LLM interpretation of page content
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Notes to the Financial Statements for The Community Trust of Mid & South Canterbury Inc
(continued from previous page)
💰 Finance & RevenueAccounting Policies, Depreciation, Capital Fund, Reserves, Financial Statements, Trust, Canterbury