✨ Financial Statements Notes
Notes to the financial statements
in New Zealand Dollars ($000's)
Capital management
The Group’s capital includes Core Real Capital Base Reserve, Accumulated Income Reserve and Capital Base Reserve.
The Group’s policy is to maintain a strong capital base so as to maintain investor confidence and to sustain future development of the Canterbury Community Trust.
The Group is not subject to any externally imposed capital requirements.
The Group’s policies in respect of capital management and allocation are reviewed regularly by the Board of Trustees.
There have been no material changes in the Group’s management of capital during the period.
Estimation of fair value
The methods used in determining the fair values of financial instruments are discussed in note 4.
Fair value hierarchy
NZ IFRS 7 requires that the classification of financial instruments at fair value through profit and loss be determined by reference to the source of inputs used to derive the fair value. This classification uses the following three-level hierarchy:
- Level 1 — quoted prices (unadjusted) in active markets for identical assets or liabilities
- Level 2 — inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)
- Level 3 — inputs for the asset or liability that are not based on observable market data (unobservable inputs)
The fair value of the financial instruments as well as methods used to estimate the fair values are summarised in the following table:
| Level 1 | Level 2 | Level 3 | |
|---|---|---|---|
| 2012 | |||
| Financial Assets | |||
| Investments | 178,485 | 269,145 | 14,086 |
| Derivatives | 0 | 0 | 0 |
| 178,485 | 269,145 | 14,086 | |
| Financial Liabilities | |||
| Derivatives | 0 | 0 | 0 |
| Level 1 | Level 2 | Level 3 | |
|---|---|---|---|
| 2011 | |||
| Financial Assets | |||
| Investments | 346,851 | 114,385 | 19,851 |
| Derivatives | 0 | 0 | 0 |
| 346,851 | 114,385 | 19,851 | |
| Financial Liabilities | |||
| Derivatives | 0 | 1,945 | 0 |
Reconciliation of Level 3 financial assets
| Group 2012 | Group 2011 | |
|---|---|---|
| Opening balance | 19,851 | 33,118 |
| Purchases | 1,872 | 3,623 |
| Sales | (7,970) | (15,433) |
| Total gains and losses recognised in other comprehensive income | 333 | (1,457) |
| Closing balance | 14,086 | 19,851 |
| Total gains and losses for assets held at end of the year | 333 | (1,457) |
There were no transfers between categories in the year.
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NZ Gazette 2012, No 103
✨ LLM interpretation of page content
💰
Canterbury Community Trust Financial Statements
(continued from previous page)
💰 Finance & Revenue2 July 2012
Financial instruments, Fair value hierarchy, Investments, Derivatives, Capital management