✨ Financial Statements Notes
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2012
16.6 Fair Value of Financial Instruments
The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the Trust is the current bid price. These instruments are included in level 1.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to determine the fair value of the instrument are observable, the instrument is included in level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
There were no transfers between level 1 and 2 in the period.
| Assets | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| NZ$'000 | NZ$'000 | NZ$'000 | NZ$'000 | |
| 2012 | ||||
| Financial assets at fair value through profit or loss | 210,826 | - | 46,659 | 257,485 |
| Derivatives at Fair Value Through Profit or Loss | - | 539 | - | 539 |
| Assets | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| NZ$'000 | NZ$'000 | NZ$'000 | NZ$'000 | |
| 2011 | ||||
| Financial assets at fair value through profit or loss | 226,117 | 0 | 27,401 | 253,518 |
| Derivatives at Fair Value Through Profit or Loss | - | (1,550) | - | (1,550) |
Level 3 Hierarchy
| Financial Assets at Fair Value Through Profit or Loss | 2012 | 2011 |
|---|---|---|
| NZ$'000 | NZ$'000 | |
| Balance at 1 April | 27,401 | |
| Plus Additional Investments | 17,300 | 26,243 |
| Less Realisation of Investments | - | - |
| Realised/Unrealised Gains/(Losses) Recognised in the Statement of Comprehensive Income | 817 | (820) |
| Dividend Income | 1,417 | 377 |
| Management Fees Recognised in the Statement of Comprehensive Income | (276) | (29) |
| Balance at 31 March | 46,659 | 27,401 |
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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
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💰 Finance & RevenueFinancial Statements, Fair Value, Financial Instruments, Waikato Community Trust