✨ Financial Statements Notes
16 AUGUST 2013 NEW ZEALAND GAZETTE, No. 109 2949
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2013
Depreciation is provided on property, plant and equipment and art and artefacts, including freehold buildings but excluding land. Rental property is depreciated over the expected useful life on a basis consistent with similar owned property, plant and equipment.
Depreciation on buildings, office equipment and motor vehicles is calculated on a diminishing value basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. Art and artefacts are depreciated using the straight line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period.
The following depreciation rates have been used:
- Office Equipment 7.5%-80.4% Diminishing Value
- Motor Vehicles 36% Diminishing Value
- Buildings 3.0%-39.6% Diminishing Value
- Art and Artefacts 1.0% Straight Line
3.11 Cash Flows
Cash flows from operating activities are presented using the direct method.
Definition of terms used in the cash flow statement:
- Cash means cash on deposit with banks net of outstanding bank overdrafts, but does not include cash or deposits held by the fund managers. Therefore the Statement of Cash Flows does not reflect the cash flows within the fund managers’ portfolios.
- Investing activities comprise the purchase and sale of property, plant and equipment. Cash flows from the realisation of investments are included in operating activities.
- Financing activities comprise the change in equity of the Trust.
- Operating activities include all transactions and events that are not investing or financing activities.
3.12 Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except for receivables and payables which are recognised inclusive of GST. The net amount of GST recoverable from or payable to Inland Revenue is included as part of receivables or payables. The GST component of cash flows arising from investing and financing activities which is recoverable from or payable to Inland Revenue is classified as operating cash flows.
3.13 Taxation
Income derived by the Trust is exempt income under Section CW52 of the Income Tax Act 2007.
3.14 Translation of Foreign Currency Transactions and Balances
Foreign currency transactions are translated into the functional currency (New Zealand dollars) using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.
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NZ Gazette 2013, No 109
✨ LLM interpretation of page content
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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, Depreciation, Cash Flows, Goods and Services Tax, Taxation, Foreign Currency Transactions