✨ Financial Statements Notes
15 AUGUST 2012 NEW ZEALAND GAZETTE, No. 96 2625
Notes to the financial statements (continued)
2 Basis of preparation (continued)
The effect on the statement of comprehensive income was as follows.
In thousands of New Zealand Dollars($000)
| 2012 | 2011 | |
|---|---|---|
| Change to recognition of grants as an expense | (2,285) | (2,976) |
| Effect on profit or loss | (2,285) | (2,976) |
| Change to total comprehensive income | (2,285) | (2,976) |
| Distributions in the form of grants | 2,285 | 2,976 |
| Change to Trust equity at end of year | - | - |
3 Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have been applied consistently by group entities, except as explained in note 2(e), which addresses the change in accounting policy.
(a) Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to the functional currency at exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date.
(b) Financial instruments
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and debt securities, loans, cash and cash equivalents, short term deposits and trade and other payables.
Investments
An investment is classified as at fair value through profit or loss if it is held for trading or is designated as such upon initial recognition. Investments are designated at fair value through the profit and loss if the Trust manages such investments and makes purchase and sale decisions based on their fair value. Upon initial recognition, attributable transactions costs are recognised in the profit and loss when incurred. Subsequent to initial recognition, investments are measured at fair value, and changes therein are recognised in profit or loss.
Purchases and sales of investments are recognised on the trade date or the date on which the Trust commits to purchase or sell the asset.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of 3 months or less (note 11).
Short term deposits
Short term deposits are short term investments with an original maturity of between 3-12 months (note 13).
Loans
Loans are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are classified as loans and receivables and are carried at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial asset and allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, to the next carrying amount of the financial asset.
Trade and other payables
Trade and other payables are stated at cost and are classified as other liabilities.
Next Page →
NZ Gazette 2012, No 96
✨ LLM interpretation of page content
💰
Statement of financial position for BayTrust
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Accounting Policies, Reporting Entity, Taxation, Bay of Plenty Community Trust