✨ Financial Statements
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2013
15.4 Liquidity Risk Management
Liquidity risk is the risk that the Trust will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining sufficient cash and the ability to close out market positions. In meeting its liquidity requirements, the Trust maintains a level of investments that can be converted into cash at short notice.
The Trust financial liabilities comprise accounts payable and accruals, unconditional unpaid donations and derivative financial instruments. At balance date, all accounts payable and donations payable were current and are normally settled within one month of balance date. Derivative Financial Instruments represent forward exchange contracts used to manage foreign currency exposure. Any liability regarding these will normally be settled within two months of balance date.
15.5 Fair Value of Financial Instruments
The following table analyses Financial Instruments carried at fair value by valuation method. The different levels have been defined in Note 3.9.2.
There were no transfers between level 1 and 2 in the period.
| 2013 | 2012 | |
|---|---|---|
| NZ$'000 | NZ$'000 | |
| Level 1 | ||
| Australasian Equities | 48,298 | 40,551 |
| New Zealand Fixed Interest | 26,972 | 25,882 |
| New Zealand Cash | 15,347 | 12,591 |
| Total Level 1 | 90,617 | 79,024 |
| Level 2 | ||
| Global Equities | 73,463 | 67,515 |
| Global Fixed Interest | 68,505 | 64,287 |
| Derivative Financial Instruments | (461) | 539 |
| Total Level 2 | 141,507 | 132,341 |
| Level 3 | ||
| Te Keté Putea Limited Partnership | 195 | - |
| NZ Private Equity | 334 | - |
| Infrastructure | 22,371 | 20,417 |
| Unlisted Property | 27,395 | 26,242 |
| Total Level 3 | 50,295 | 46,659 |
In previous years, unlisted global unit trusts were classified as Level 1 within the fair value hierarchy. This year unlisted global unit trusts have been classified as Level 2 to more closely align with investment industry practice. The comparatives have been updated to reflect this change.
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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