✨ Financial Statements Notes
7 AUGUST 2013 NEW ZEALAND GAZETTE, No. 102 2739
WELLINGTON COMMUNITY TRUST
Notes to the Financial Statements
For the Year Ended 31 March 2013
(g) Impairment
The carrying amount of the Trust’s assets is reviewed each balance date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated.
If the estimated recoverable amount of an asset is less than its carrying amount, the asset is written down to its estimated recoverable amount and an impairment loss is recognised immediately in the Statement of Comprehensive Income.
The estimated recoverable amount of investments carried at amortised cost is calculated as the present value of estimated future cash flows, discounted at their original effective interest rate. Receivables with a short duration are not discounted.
The estimated recoverable amount of other assets is the greater of their fair value, less costs to sell, and value in use. Value in use is determined by estimating future cash flows from the use and ultimate disposal of the asset and discounting these to their present value, using a pre-tax discount rate that reflects current market rates and the risks specific to the asset. For an asset that does not generate largely independent cash flows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.
Impairment losses are reversed when there is a change in the estimates used to determine the recoverable amount.
(h) Operating Leases
Operating lease payments, where the lessor effectively retains substantially all the risks and rewards of ownership of the leased items, are included in the determination of the net surplus in equal installments over the lease term.
Donations
Donations are paid when approved by the Trustees, and donations are recognised as an expense when they are paid. The Trust donated $180,000 to the New Zealand International Arts Festival; this was the Trust’s most significant donation for the 2013 year.
Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years.
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NZ Gazette 2013, No 102
✨ LLM interpretation of page content
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Notes to the Financial Statements of The Community Trust of Wellington
(continued from previous page)
💰 Finance & Revenue20 June 2013
Financial Statements, Notes, Impairment, Operating Leases, Donations, Accounting Policies