✨ Financial Statements Notes
16 AUGUST 2013 NEW ZEALAND GAZETTE, No. 109 2945
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2013
3.6.2 Donations Payable
In the process of applying the Trust’s accounting policies, management have made judgements regarding whether or not discretionary donations are payable at year end or if discretionary donations are contingent liabilities at year end. Donations payable are discretionary donations where there are no significant conditions attached or where the significant conditions attached to the donations have been met at balance date. Donations payable are recorded at notional value.
3.6.3 Employee Entitlements
Provision is made for wages, salaries and annual leave when it is probable that settlement will be required and they are capable of being measured reliably. Provisions in respect of employee entitlements expected to be settled within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. Provisions made in respect of employee entitlements not expected to be settled within 12 months are measured at the present value of the estimated cash outflows to be made in respect of services provided up to the reporting date.
3.6.4 Derivative Financial Instruments
The base currency of the international investment portfolio is New Zealand dollars. Where possible, the Trust uses hedged pooled funds to hedge currency exposures back to the New Zealand dollar. Where no suitable hedged pool fund is available, the Trust uses forward exchange contracts managed by the BNZ to reduce currency exposure to foreign currency denominated investments. The Trust may choose on occasion to increase its currency exposure to a maximum of 50% to seek additional return. See Note 15.2.2.
Derivatives that do not qualify for hedge accounting and that are accounted for as fair value through profit or loss are recognised initially at fair value. Subsequent to initial recognition, derivative financial instruments are stated at fair value. Changes in the fair value are recognised immediately in the Statement of Comprehensive Income within Net Increase in Derivative Financial Instruments.
Further details of the fair value of derivative financial instruments are disclosed in Note 3.9.3.
3.6.5 Embedded derivatives
Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives only when their risks and characteristics are not closely related to those of host contracts and the host contracts are not measured at fair value with changes in fair value recognised in profit or loss.
Trust Waikato does not apply hedge accounting.
3.7 Cash and Cash Equivalents
Cash and cash equivalents comprise cash at banks and on hand. The carrying value of cash at banks and on hand approximates their fair value.
Full NZ IFRS Financial Statements for the year ended 31 March 2013
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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, Donations Payable, Employee Entitlements, Derivative Financial Instruments, Embedded derivatives, Cash and Cash Equivalents