✨ Financial Statements Notes
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2012
1.6.13 Currency Translation
1.6.13.1 Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The financial statements are presented in New Zealand dollars, which is the Trust’s functional and presentation currency, rounded to the nearest thousand dollars.
1.6.13.2 Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.
Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Translation differences on non-monetary financial assets and liabilities carried at fair value are included in the Statement of Comprehensive Income for the period.
1.6.14 Leased Assets
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Payments under operating leases are recognised in the Statement of Comprehensive Income on a straight line basis over the term of the lease.
1.6.14.1 Entity as lessor
Amounts due from lessees under finance leases are recorded as receivables. Finance lease receivables are initially recognised at amounts equal to the present value of the minimum lease payments receivable plus the present value of any unguaranteed residual value expected to accrue at the end of the lease term. Finance lease payments are allocated between interest revenue and reduction of the lease receivable over the term of the lease in order to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.
When assets are leased under an operating lease, the asset is included in property, plant and equipment in the Balance Sheet based on the nature of the asset. They are depreciated over their expected useful lives on a basis consistent with similar owned property, plant and equipment.
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NZ Gazette 2012, No 97
✨ LLM interpretation of page content
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Notes to Financial Statements for The Waikato Community Trust Incorporated
(continued from previous page)
💰 Finance & RevenueCurrency Translation, Functional Currency, Presentation Currency, Foreign Currency Transactions, Exchange Rates, Foreign Exchange Gains and Losses, Statement of Comprehensive Income, Non-monetary Assets, Liabilities, Fair Value, Translation Differences, Leased Assets, Finance Leases, Operating Leases, Present Value, Minimum Lease Payments, Interest Revenue, Lease Receivable, Property, Plant and Equipment, Balance Sheet, Depreciation, Useful Lives