✨ Financial Statements Notes
16 AUGUST 2013 NEW ZEALAND GAZETTE, No. 109 2943
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2013
2.5 Changes in Accounting Policy and Disclosures
There have been no changes to accounting policies.
2.6 New Zealand Equivalents to International Financial Reporting Standards Issued But Not Yet Effective
NZ IFRS issued not yet effective will not affect the Trust because the Minister of Commerce has not approved a new Accounting Standards Framework (incorporating a Tier Strategy) developed by the External Reporting Board (XRB). Under this Accounting Standards Framework, the Trust is classified as a Tier 1 or Tier 2 reporting entity and may be required to apply full Public Benefit Entity (PBE) Accounting Standards. These standards are being developed by the XRB based on current International Public Sector Accounting Standards.
The effective date for the new standards for PBEs is expected to be for reporting periods beginning on or after 1 July 2014. This means the Trust expects to transition to the new standards in preparing its 31 March 2016 financial statements. As the PBE Accounting Standards have just been released, the Trust is unable to assess the implications of the new Accounting Standards Framework at this time.
Due to the change in the Accounting Standards Framework for PBEs, it is expected that all new NZ IFRS and amendments to existing NZ IFRS will not be applicable to PBEs. Therefore, the XRB has effectively frozen the financial reporting requirements for PBEs until the new Accounting Standards Framework is effective. Accordingly, no disclosure has been made about new or amended NZ IFRS issued after June 2011 that exclude PBEs from their scope.
3 SPECIFIC ACCOUNTING POLICIES
The following specific accounting policies which materially affect the measurement of comprehensive income and the financial position have been applied.
3.1 Revenue Recognition
3.1.1 Investment Income
Investment income is presented in the Statement of Comprehensive Income and comprises interest and dividend income on funds invested, gains and losses on the disposal of investments, changes in the fair value of investments, foreign currency gains and losses, and gains and losses on hedging instruments. Interest income is recognised as it accrues, using the effective interest method. Dividend income is recognised on the date that the Trust’s right to receive payment is established, which in the case of quoted securities is the ex-dividend date.
3.1.2 Rental Income
Rental income (net of any incentives) is recognised on a straight line basis over the lease term.
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NZ Gazette 2013, No 109
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Financial Statements of The Waikato Community Trust Incorporated
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🏢 State Enterprises & Insurance11 July 2013
Financial statements, Community Trusts, Waikato, Income, Expenses, Distributions, Cash Flow, Accounting Policies, Revenue Recognition, Investment Income, Rental Income