✨ Financial Statements Notes
Notes to the financial statements
1
Reporting entity
The Bay of Plenty Community Trust is a charitable trust, domiciled in New Zealand, incorporated in accordance with the provisions of The Community Trusts Act 1999. The Trust is a Public Benefit Entity whose principal activity is to distribute income from its investments activities to the Bay of Plenty communities.
2
Basis of preparation
(a)
Statement of compliance
The financial statements have been prepared in accordance with the requirements of the Financial Reporting Act 1993 and Generally Accepted Accounting Practice in New Zealand (NZ GAAP). They comply with New Zealand equivalents to International Financial Reporting Standards, and its interpretations (NZ IFRS) and other applicable Financial Reporting Standards, as appropriate for Public Benefit Entities.
The Board of Trustees approved the financial statements on 27 June 2012.
(b)
Basis of measurement
The financial statements have been prepared on the historical cost basis except for the following:
- derivative financial instruments are measured at fair value
- financial instruments at fair value through profit or loss are measured at fair value
The methods used to measure fair values are discussed further in note 4.
(c)
Functional and presentation currency
These financial statements are presented in thousands of New Zealand dollars ($000’s) which is the functional currency of the Trust.
(d)
Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation, uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements relating to the valuation of investments are discussed further in note 4.
(e)
Taxation
Bay of Plenty Community Trust Inc. is exempt from income tax with effect 1 April 2008, under section CW 52 of the Income Tax Act 2007.
(f)
Change in accounting policy
On 1 April 2011 the Trust changed the treatment of grants made being recognised as a distribution from equity to being recognised as an expense. The Trust chose to change the accounting policy for classifying grants made as recognition of grants made as an expense provides more relevant information about the effects of transactions on the Trust’s financial performance.
This change in accounting policy was applied retrospectively. The following table summarises the adjustments made to the statement of financial performance and statement of changes in equity on implementation of the new accounting policy. There was no impact on the statement of financial position.
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NZ Gazette 2012, No 96
✨ LLM interpretation of page content
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Statement of financial position for BayTrust
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💰 Finance & RevenueFinancial Statements, Accounting Policies, Reporting Entity, Taxation, Bay of Plenty Community Trust