9 AUGUST 2013 NEW ZEALAND GAZETTE, No. 104 2815

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, bank balances, deposits held at call with banks, other short term highly liquid investments with original maturities of twelve months or less, which are held to meet short term cash requirements.

Property, Plant & Equipment

Property, plant and equipment are valued at cost, less accumulated depreciation and impairment losses except for freehold land and buildings which are subsequently revalued on a cyclical basis. Land and Buildings are revalued every 3 years.
Valuations are at net current value, as determined by an independent valuer. Any revaluation surplus arising on the revaluation of land and buildings is transferred directly to the asset revaluation reserve. A revaluation deficit in excess of the asset revaluation reserve balance for the land and buildings is recognised in the Statement of Comprehensive Income in the period it arises. Revaluation surpluses which reverse previous revaluation deficits recorded in the Statement of Comprehensive Income are recognised as revenue in the Statement of Comprehensive Income.
Property, plant and equipment is reviewed annually to determine any impairment losses. Impairment losses are recognised in the Statement of Comprehensive Income.
When an item of property, plant and equipment is disposed of, any gain or loss is recognised in the Statement of Comprehensive Income and is calculated as the difference between the sale price and the carrying value of the item.

Depreciation

Depreciation is provided over the useful life of the assets. Land is not depreciated. Buildings are depreciated at 2% per annum on straight line basis. Office equipment and furniture are depreciated on a diminishing value basis. The rates used are those approved by Trustees as follows:

Impairment

If the recoverable amount of an item of property, plant and equipment is less than its carrying amount, the item is written down to its recoverable amount. The write down of an item recorded at historical cost is recognised as an expense in the Statement of Comprehensive Income. When a revalued item is written down to recoverable amount, the write down is recognised as a downward revaluation to the extent of the corresponding revaluation reserve, and any balance recognised in the Statement of Comprehensive Income.
The carrying amount of an item of property, plant and equipment that has previously been written down to recoverable amount is increased to its current recoverable amount if there has been a change in the estimates used to determine the amount of the write down. The increased carrying amount of the item will not exceed the carrying amount that would have been determined if the write down to recoverable amount had not occurred.
Reversals of impairment write downs are accounted for as follows:

• On property, plant and equipment that are not revalued, the reversal is recognised in the Statement of Comprehensive Income; and
• On revalued property, plant and equipment, the reversal is recognised as an upward revaluation in the Statement of Comprehensive Income.

Foreign Currency Transactions and Balances

Foreign currency transactions are translated to New Zealand dollars at the spot exchange rate applying at the date of the transaction.
All amounts denominated in foreign currencies at balance date are translated to New Zealand dollars at the balance date closing exchange rate.
All realised and unrealised gains and losses on foreign currency transactions are recognised in the Statement of Comprehensive Income.

Financial Assets

Financial assets are recognised in the Statement of Financial Position when the Foundation becomes party to a financial contract. They include cash balances, investments, term deposits, accrued income and intercompany balances.
All assets that are financial instruments are recognised in the Statement of Financial Position.
All financial assets are initially recognised at fair value, being the fair value of consideration paid. After initial recognition, financial assets designated at fair value through profit or loss are revalued to fair value at each reporting date.
For investments that are actively traded in organised financial markets, fair value is determined by reference to exchange quoted market bid prices at the close of business on the reporting date. Investments in pooled funds are valued at the unit exit price (“bid price”) determined by the Fund Manager at the close of business on the reporting date.
All realised and unrealised gains or losses on investments are recognised in the Statement of Comprehensive Income.