✨ Financial Statements Notes
2738 NEW ZEALAND GAZETTE, No. 102 7 AUGUST 2013
WELLINGTON COMMUNITY TRUST
Notes to the Financial Statements
For the Year Ended 31 March 2013
(d) Depreciation
Depreciation has been calculated as follows using the diminishing value method:
| Furniture | 9.0% - 26.4% |
| Equipment | 33.0% - 80.4% |
(e) Investments including Investments in Managed Funds
Shares in listed companies and quoted fixed interest investments are designated as "financial assets at fair value through profit or loss" as the portfolios are managed on a fair value basis in accordance with a documented investment strategy. They are initially recorded at cost and subsequently revalued to bid price each balance date. Gains and losses are recorded in the Statement of Comprehensive Income as part of the investment income.
(f) Financial Instruments
Financial instruments are recognised if the Trust becomes a party to the contractual provisions of the instruments. Financial assets are initially measured at fair value plus transaction costs except for those classified as fair value through profit or loss which are initially measured at fair value. Financial assets are derecognised if the Trust’s rights to the cash flows from the financial assets expire or if the Trust transfers a financial asset to another party without retaining control or substantially all risks and rewards of the asset. Regular purchases and sales of financial assets are accounted for at trade date. Financial liabilities are derecognised if the Trust’s obligations, specified in the contract, expire, are discharged or cancelled.
Held-to-Maturity Investments
If the Trust has the intent and ability to hold debt securities to maturity, then they are classified as held-to-maturity. Subsequent to initial recognition, held-to-maturity investments are measured at amortised cost using the effective interest method, less any impairment losses.
Investments at Fair Value through profit or loss
An instrument is classified at fair value through the profit and loss if it is held for trading or is designated as such upon initial recognition. Financial instruments 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. They are initially recorded at cost and subsequently revalued to market bid price each balance date. Upon initial recognition, attributable transaction costs are recognised in the Statement of Comprehensive Income when incurred. Subsequent to initial recognition, financial instruments at fair value through profit or loss are measured at fair value and changes therein are recognised in the Statement of Comprehensive Income.
Loans and Receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method less any impairment.
Cash and cash equivalents comprise cash balances and call deposits.
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NZ Gazette 2013, No 102
✨ LLM interpretation of page content
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Financial Statements of The Community Trust of Wellington
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💰 Finance & Revenue20 June 2013
Financial Statements, Accounting Policies, Reporting Entity, Revenue, Income Tax