✨ Financial Statements Notes
Notes to the financial statements (continued)
3 Significant accounting policies (continued)
(c) Grants expenditure and grants payable
The Trust makes discretionary grants. The grants are recognised as an expense at the point at which the payment of the grant has been approved by the Trustees and the recipient of the grant does not have any further obligations to meet in order to receive the grant.
Grants payable are those grants which have been approved, there are no further obligations to be met however the grant has not been paid by the reporting date.
Where grants have been approved in the current or previous years, but are subject to the fulfillment of certain conditions in future years, are treated as contingent liabilities (note 9).
(d) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
(ii) Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Trust and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
(iii) Depreciation
Depreciation is recognised in profit or loss on a diminishing value basis over the estimated useful lives of each part of an item of property, plant and equipment.
The depreciation rates for the current and comparative periods are:
| Furniture & fittings | 11.4% to 33% |
| Office equipment | 26.4% to 80.4% |
| Motor vehicle | 30% |
Depreciation methods, useful lives and residual values are reassessed at the reporting date.
(e) Impairment
The carrying amounts of the Trust’s assets are reviewed at each reporting date to determine whether there is any indication of impairment.
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses directly reduce the carrying amount of assets and are recognised in profit or loss.
(i) Impairment of debt instruments and receivables
The recoverable amount of the Trust’s receivables carried at amortised cost is calculated as the present value of estimated future cashflows, discounted at the original effective interest rate (i.e. the effective interest rate computed at initial recognition of these financial assets). Receivables with a short duration are not discounted.
(ii) Non-financial assets
The carrying amounts of the Trust’s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.
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NZ Gazette 2012, No 96
✨ LLM interpretation of page content
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Statement of financial position for BayTrust
(continued from previous page)
💰 Finance & RevenueFinancial Statements, Accounting Policies, Reporting Entity, Taxation, Bay of Plenty Community Trust